Harbor Freight Tool Class Action

[Junkman]

https://topclassactions.com/lawsuit...tools-class-action-alleges-fake-sale-pricing/

A California man claims in a new class action lawsuit that Harbor Freight Tools has been using several different deceptive pricing schemes to induce sales.

Plaintiff Ted Shimono says that discount tool retailer Harbor Freight Tools advertises “fake sale” prices to make customers think certain items are being offered at a significant discount when they’re actually not.

He says this tactic entices customers to buy lower-quality merchandise at inflated prices.

According to the Harbor Freight Tools class action lawsuit, many items for sale were marked with a purported original price, described in the store’s advertising as a “regular,” “retail” or “comp[are] at” price.

Shimono claims these prices are artificially inflated. He also says the merchandise was never offered for sale at the purported original price.

Shimono argues that many of these “original” prices are inherently arbitrary and contrived by Harbor Freight Tools. He says many of these items are sold exclusively by Harbor Freight Tools, such as the store’s own house-brand products. Since these items are sold through only one retailer, there is no actual market for them – and therefore no determinable market price, Shimono says.

In comparison to these advertised “original” prices, the prices at which the items for sale seem significantly lower, creating the impression of a discount that doesn’t actually exist, Shimono claims. He says Harbor Freight Tools uses this allegedly false discount to induce customers into making purchases.

The Harbor Freight Tools class action lawsuit argues this pricing tactic specifically runs afoul of particular California state consumer protection laws. Shimono argues the retailer’s pricing violates the California Unfair Competition Law, the False Advertising Law, and the Consumer Legal Remedies Act. The tactic also violates the Federal Trade Commission Act, the plaintiff says.

Shimono further takes issue with another of the defendant’s advertised discounts. Harbor Freight Tools publishes coupons that say “20% off your purchase” in large bold print, but then qualify that offer with much smaller print that reads “of any one item.”

Shimono says not only does the advertisement obscure the fact that the discount applies only to a single item and not the entire purchase, but also that Harbor Freight Tools will apply the discount only to the lowest priced item in the purchase – not “any” item, as advertised.

Finally, Shimono says Harbor Freight Tools advertises multiple different prices for the same item, then charges customers the highest of those prices when they make their purchase.

Shimono proposes to represent a plaintiff Class consisting of all persons in the U.S. who bought products from the defendant for their own personal use at an allegedly false “sale” price within the four years prior to the filing of this Harbor Freight Tools class action lawsuit.

He seeks an award of damages and restitution of the money with which the defendant has been allegedly unjustly enriched at Class Members’ expense.

Counsel for the plaintiff and proposed Class are Ronald A. Marron, Skye Resendes, William B. Richards Jr., Michael T. Houchin of the Law Offices of Ronald A. Marron; and David Elliot of the Law Office of David Elliot.

The Harbor Freight Tools Fake Sale Class Action Lawsuit is Ted Shimono v. Harbor Freight Tools USA Inc., Case No. 5:16-cv-01052, in the U.S. District Court for the Central District of California.

 

[jacked_72]

He may get some traction with his claim in California.

 

[gte718p]

Color me shocked, a you mean a consumer needs to pay attention and maybe do some research before believing every advertisement they see?

I bet the plaintiff also is going to sue Nigeria because a prince promised him some money.

 

[CoogarXR]

That "compare at $$$" pricing gets on my nerves, but it's obviously arbitrary. I don't think it's worth suing over.

 

[Evilunclegrimace]

He just might. I get the HF sales catalog and the are always having a "special" sale with pricing for the sale dates only. I regularly find the same product, in the same flyer, with the same PN for two different prices. The sales price is generally higher than the standard price.

 

[Zapp Branigan]

I saw in the latest ads they changed their format from "sale price" to "compare at" now.

 

[four.cycle]

^ haha! yeah... good luck with that one, Mr. Shimono

Harbor Freight, being the exclusive retailer of a given item/brand, is perfectly within the law to set a so called "List Price" (or Manufacturer's Suggested Retail Price) as they see fit. That it's some arbitrarily made-up imaginary number doesn't matter one little bit in a court of law.

He's fishin' in the dark.

 

[thebeekeeper1]

. . .but also that Harbor Freight Tools will apply the discount only to the lowest priced item in the purchase – not “any” item, as advertised.

That's an outright lie. The cash register automatically applies the discount to the highest priced item you bought.

Shakespeare had it right. GRRRRRRRRRR

 

[M-technik-3]

Shows there is a lawyer that will take a case about anything.

 

[My Old Tools]

I wonder if he has sued every car dealer in the state. MSRP is a joke.

 

[Brian_WK]

Harbor Freight stuff will now have to cost as much as Craftsman to pay for this lawsuit. No increase in quality of coarse.
That comp price is a joke. I don't see it as a MSRP just some random number that they put on on there in big letters to make it look like you are getting a deal.
Never had any issues with the coupons. Even the few times I had 2 bigger purchases to make. Bought item with coupon on phone Left the store put item in car. Went back in and did it again.

Brian

 

[notlob]

I think Mr. Shimano's lawyers should do quite well with this case. In my opinion, perpetually claiming that something is "on sale", when it is not, is both a species of fraud and an unfair business practice under California law.

 

[LXCam]

That's our tax payer dollars overseeing this nonsense. I wonder if I can sue him for needless expenditures of my money.

 

[Orangestang]

My X-wife used to say that about the Kohl's store all the time.

 

[Showkey]

Maybe they ( the lawyers ) are off Starbucks and on to HF.............

The 20t press is a good example of pricing irregularities...........

Add the 20% off coupons to the mix as well...........

 

[gte718p]

I think Mr. Shimano's lawyers should do quite well with this case. In my opinion, perpetually claiming that something is "on sale", when it is not, is both a species of fraud and an unfair business practice under California law.

Several companies have lost these law suits recently. I received $1.25 check not long ago because I was included in a similar class action suit. The only people who made any money were the lawyers.

My question is at what point is the consumer responsible for their actions? You want something, you go to the seller and either pay the asked price or you pass. Everything else is just chaff.

If you feel like you got a good deal great, but fundamentally it is still just an exchange. By definition the seller should be attempting to maximize the price he is getting and the seller should be attempting to minimize the price they are paying. The control is if the price is to high, the seller leaves without spending his money. There are times this theory breaks down, but HF definitely does not have a monopoly on cheap tools and cheap tools are not a required staple of life.

 

[neophyte]

^ haha! yeah... good luck with that one, Mr. Shimono

Harbor Freight, being the exclusive retailer of a given item/brand, is perfectly within the law to set a so called "List Price" (or Manufacturer's Suggested Retail Price) as they see fit. That it's some arbitrarily made-up imaginary number doesn't matter one little bit in a court of law.

He's fishin' in the dark.

Overstock.com Inc recently lost a lawsuit in California for similar actions and were slapped with a multi million dollar fine. California doesn't seem to like deceptive pricing when done by major retailers.

http://whitecollarfraud.blogspot.com/2014/01/california-judge-rules-slaps.html?m=1

 

[Junkman]

My X-wife used to say that about the Kohl's store all the time.

Kohl's in a Federal Court in MA had the case dismissed, and in WI, a Federal Judge refused to dismiss the case.

 

[jd_1138]

What a pencil neck ambulance' chasing dweeb. It's up to the buyer to ascertain whether or not a price is good. If it says "compare at $**.**", it probably means compared to the pricing of non-**** tools.

 

[nh_yota]

It's the same thing as when grocery stores put sale tags on their shelves to highlight their "everyday low price" instead of a sale price. Your eyes notice the tag and your mind thinks "oh it's on sale" but then when you stop for a minute you realize it's not on sale.

 

[David W]

Since this is class action, all of us, or at lease those of us who live in California can get in on it too. The lawyers will make millions. The rest of us might get a 30% off coupon.

 

[Ole Slewfoot]

What a pencil neck ambulance' chasing dweeb. It's up to the buyer to ascertain whether or not a price is good. If it says "compare at $**.**", it probably means compared to the pricing of non-**** tools.

While it my be the buyers responsibility to guess at the quality of what they are buying, deliberate falsification of description is and should be a crime.

My latest harbor flier has a 'compare at' of the 'new deep cut portaband saw'
HF 99.99 save 179 dewalt 299 milwaukee 279.99, so maybe those numbers do come from somewhere.

 

[woody 73]

My X-wife used to say that about the Kohl's store all the time.

It is snowing today...Kohl's is having a sale.
Earthquake Today......" " " " "
Eat your green beans Today " " " "
Your car just got hit ' ' " " "
Mother-in-law coming Today " " " "
X-wife day " " " " "
Root canal Day Why Kohl's is having a sale.
End of Earth Day " " " " " "

 

[whateg01]

... The rest of us might get a 30% off coupon.

Remember, you can only use it on one item!

I don't like the idea of stores coming up with random numbers to make the sales seem better. I've heard that stores do that around the holidays, too. Mark up the price a few weeks ahead of time, then lower it back down to the "normal" price and say it's on sale. I've never paid close enough attention to it to know if it's true or not. Just don't care. That said, I look around, too. So, if HF has a hose reel on sale for "X" and Northern Tool is selling the same thing for "X+$10", then I see the HF price as the better deal. Kind of like buying something online and using the total price, including shipping instead of just the item price and them complaining because the shipping was so expensive. If the total price is unreasonable, I move on.

I have never had my HF coupon applied to anything other than the highest priced item I'm buying. And I don't know of any other store that will let me bring a coupon in for something I bought 29 days ago and apply it retro-actively.

But, if Cali law says what they are doing, then either Cali law needs to be changed, or HF needs to abide by them if doing business there.

Dave

 

[Brownsfan]

Most of us with half a brain know how they do things. I don't think it's deceptive. It's saying compared to name brand at pics X and our unit is price Y. Some even say compare nationally from X then their price. I have never once thought HF was selling the item for that price then lowering it. It's always been a running joke that the flyer is the same stuff on sale as last just arranged different.

 

[454ragtop]

Overstock.com Inc recently lost a lawsuit in California for similar actions and were slapped with a multi million dollar fine. California doesn't seem to like deceptive pricing when done by major retailers.

http://whitecollarfraud.blogspot.com/2014/01/california-judge-rules-slaps.html?m=1

Probably because so many people there can't read English.

 

[zendriver]

The HF $10 torque wrench, is being sold to consumers, "at an inflated price!"

 

[Ole Slewfoot]

True, they are barely worth $5.

 

[Harry Bergeron]

I intend to file a similar suit based on politicians' bogus promises.
Talk about deceptive advertizing! Slam dunk.

 

[BDT/NWMN]

Choice of pRices: retail, regular, retarded.

They advertise "Quality Tools At Ridiculously Low Prices"

Thinking I will wait for the Official Report from Friday Night Live.

 

[CoogarXR]

I'm in Washington State, but I wonder if there's any way I can get in on this class action. I picked up a manual chainsaw and a hydraulic nail unbender last year, and I didn't realize until later that the price I paid via coupon was actually significantly higher than the regular price.

Hey, I resemble that comment

 

[upgrading]

More on Kohl's at link.
http://www.lexology.com/library/detail.aspx?g=bc25b7b9-e049-4785-8413-685695ae4226

I believe this is why Amazon changed their price structure recently.

 

[TigerDude]

He's right. Their ads are deceptive. A Tax on Stupid.

 

[MDSPHOTO]

Reeediculous!

 

[rednotch]

Maybe this will stop the fake blow out sales where there lowest price ever is $10 more then last months fake sale.

 

[L.Cheapo]

Maybe this will stop the fake blow out sales where there lowest price ever is $10 more then last months fake sale.

Wont matter to me; I ignore their ads like I do Sears.

 

[WWShop]

This is stupid. The only price that matters is the amount paid at the cash register. I never pay attention to the "Compare at" because it is ridiculous....just like this lawsuit.

 

[Ign]

He's right but it's not worth worrying about. I've got better things to do with my time. As others have said the lawyers will get rich and nothing else will come of it.

 

[methomas70]

Mr. Shimano should just shop elsewhere.

 

[finn]

I hope he wins.

I hate deceptive marketing.