SAN JOSE, Calif. (Legal Newsline) - An arbitration clause should defeat a proposed class action lawsuit against it, clothing retailer J. Crew says in California federal court.
The company filed a motion to dismiss May 17 in a case alleging it uses "false reference pricing" to mislead consumers on the quality and value of its merchandise. Plaintiffs Dani Calderon and Evguenia Babaeva filed their lawsuit first in Santa Clara County Superior Court before J. Crew removed it to federal court.
According to the plaintiffs' class action, the defendant has two divisions, J. Crew (JC) and J. Crew Factory (JCF), in which they offer similar clothing with similar labeling and logos. The plaintiffs claim they made multiple purchases of clothing from the defendant's retail locations and that J. Crew misleads consumers as to the quality and value of the merchandise sold online and at its retail stores by using "deceptive sales tactics."
Specifically they claim J. Crew offers "comparable value" prices on all of its products but fails to inform consumers what the value of prices and savings are based on and that "comparable value" prices correspond to prices "for other, higher quality products at JC not JCF." The plaintiffs allege the JCF products are not comparable to JC clothing because the JC clothing is a higher quality of material and stitching than JCF clothing. They claim the defendant's "false reference pricing" violates state and federal law.
Many retailers who operate outlet stores have faced similar lawsuits around the country, and J. Crew says most of them have been "swiftly" dismissed.
Sine plaintiff Babaeva shopped online, J. Crew says, she agreed to its arbitration clause and class action waiver when she placed her order.
The checkout page stated "By placing your order, you agree to our Terms of Use and Privacy Policy" That text included a hyperlink to the full terms, which included the clause and waiver, J. Crew says.
"It would have been impossible for Plaintiff to maker online purchase without proceeding through this page," the motion to dismiss says. "If Plaintiff did not agree to the Terms, she could have chosen not to complete her purchase. Instead, she proactively agreed to the Terms when she opted to place her order."
The complaint is not specific enough, the company adds, because the plaintiffs do not identify what products they purchased or what representations they saw or relied on - "largely depriving J. Crew of the opportunity to identify the products that Plaintiffs' claim were priced deceptively."