Against the British company Burberry, a manufacturer of clothing, accessories and perfumes of luxury in the US filed a class action lawsuit accusing the retailer to use in the stock market price tags that introduce customers to the confusion, reports Reuters.
Part of the Burberry manufactures specifically for the outlets, and the product never reaches the shelves of conventional retail stores of the retailer.
Burberry accuse that she deliberately provides false information about the prices of goods in the effluent, which was never sold in retail stores, to throw buyers off.
The applicants indicate that the tags in the effluent Burberry make buyers think they will receive a large discount than it actually is.
Burberry declined to comment to Reuters.
The Agency notes that the manufacturers of clothing and luxury accessories already repeatedly became the defendants in the courts because of the far-fetched price tags on the goods in their outlets.
In 2015 the American company Michael Kors after allegations of creating the illusion of great discounts agreed to pay $of 4.88 million and to change its trade practices.
Burberry was founded by Thomas Burberry in London in 1856 and was initially a small clothing store. In 1880 Burberry invented the world’s first breathable fabric gabardine, eight years later, its production technology was patented.
During the First world war Burberry was put in the British army lightweight waterproof coat, called a trench coat. Subsequently, these lightweight raincoats have become one of the most iconic products of the brand along with signature pattern “cage”.
According to the company, by the end of 2014 Burberry’s revenue was £2,52 billion.