Boohoo settles £156m court case over fake discounting claims

Boohoo has settled a $197m (£156m) court case in the US after the online retailer was accused of faking discounts on its US websites. 

The company, which owns PrettyLittleThing, NastyGal and boohooMAN, allegedly marked down and discounted inflated prices, listing items at a reduced price despite them rarely being sold for the original price. Boohoo denied all of the allegations. 

In a statement, KCC Class Action Services LLC, who brought the suit, said: “Plaintiffs Farid Khan, Haya Hilton, and Olivia Lee allege that defendants engaged in a deceptive pricing scheme by advertising artificially inflated original prices on their U.S. websites in that they rarely sold their products at the advertised original price.”

It alleged that Boohoo “routinely marked down and discounted these inflated prices, which gave customers the false impression that they were getting a deal or bargain”. 

It said that by doing so, the retailer violated various California consumer protection and false advertising laws and committed fraud. 

The case is now settled, however, with KCC adding: “Defendants deny all of the allegations made in the actions. The court has not determined who is right. Rather, the parties have agreed to settle the lawsuits to avoid the uncertainties and expenses associated with ongoing litigation.”

Boohoo has been contacted for comment.