Kate Spade Fails to Exit Lawsuit Over Bogus Outlet Store Sales

Kate Spade & Co. must continue to face a proposed class suit alleging it tricks outlet store shoppers with fake sales, as a federal court in California said sufficient facts supported claims the pricing scheme violated California consumer protection laws.

Marilu Calderon and Kristen Schertzer plausibly alleged Kate Spade never sold its merchandise at the reference prices, so the advertised discounts of “50% off” and “70% off” created the illusion that they were getting a bargain, the U.S. District Court for the Southern District of California said.

They alleged that none of the products purchased were ever offered for sale ...