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Boohoo faces $100m US lawsuit amid accusations of “sham sales”

// Boohoo faces $100m (£80m) lawsuit in the US over allegations of false prices
// Lawyers filed a civil claim against the retailer regarding its promotions and pricing
// Boohoo was accused of running “sham sales” and promotions

Boohoo is reportedly facing a $100 million (£81 million) lawsuit in the US over allegations it misled shoppers with “sham sales”.

According to The Telegraph, lawyers from Almadani Law and AI Law in California filed a civil claim against the British online retail giant with allegations it engaged in false pricing through fake sales and promotions.

The civil claim comes within a week of Boohoo Group facing short seller attacks after announcing a £323 million deal to buy out the remaining minority stake in PrettyLittleThing.

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Lawyers allege Boohoo ran “sham sales” with discounts on “fake” original prices which were never or almost never the original prices.

Boohoo could suffer damages exceeding $100 million if the claims succeed, said law firms said.

A Boohoo spokesman said the retailer was aware of the civil claim: “We are focused on bringing our customers designs that they love at affordable prices, and running promotions is just one of the ways that we invest in our customer proposition.”

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The post Boohoo faces $100m US lawsuit amid accusations of “sham sales” appeared first on Retail Gazette.



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