Kohl’s Sued for False Advertisement

Florida Commercial Liability Insurance

A recent lawsuit against Kohl’s claimed the stores mislead consumers by promoting phony sale prices. Although the retail giant denies any wrongdoing, this marks the latest in many similar lawsuits over the last five years. The recent allegations bring awareness for implementing Florida Commercial Liability Insurance to protect your retail business.

Wendy Chowning and Lourdes Casas of Chula Vista filed the suit on July 21 in a California federal court which accused the chain of falsely advertising discounts that didn’t exist. They claimed Kohl’s promoted phony prices on their proprietary brand’s products. For example, JCK Magazine referenced a November ad that featured a robe that was priced at 40 percent off its original $46 dollar price tag at $29.99. Further, a Jennifer Lopez dress and an Apt. 9 shirt were advertised at 70 and 60 percent off, respectively. The issue lied in the fact that the “original” prices were never actually charged.

Consequently, the suit states “The plaintiffs were misled as to the value of the items they purchased.” In addition, the suit cites false advertising and unfair competition among other violations. As this is not the first time Kohl’s has been charged with these violations, the current lawsuit wishes to create a class-action.

Unfortunately, this marks yet another suit against Kohl’s for the same reasons. In June, Steven Russell filed another lawsuit claiming the company falsely advertised original and sale prices, misleading consumers yet again. Russell documented 15 separate instances where he was overcharged for product in Palm Desert, California over the course of 4 years. The pending suit seeks $5 million in damages in extra compensation to cover court costs.

At Newman Crane, we understand the importance of protecting your retail business with proper insurance coverage. We offer comprehensive policies at competitive prices in order to combat any risk exposures your business might face. For more information, we invite you to contact us today at (407) 859-3691.