Barneys ‘Discounted’ Scarf, Sweater No Bargain, Shopper Alleges

Barneys New York Inc. deceptively advertises merchandise at its retail outlet stores as having an inflated original price and a “phantom” discount, a California consumer alleges in a new class suit.

Kristen Schertzer spent $450 at a Barneys Warehouse in Carlsbad, Calif., in October 2018, relying on an apparent 50 percent discount on a scarf and sweater, she says. But the pricing scheme was deceptive because the advertised discount wasn’t based on the true market value of the items she bought, she says.

When retailers use a false “reference” price as the basis for discounts, consumers receive goods of lower ...