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$6.8M Settlement Reached in The Children’s Place Price Fixing Class Action

Elizabeth DiNardo, Esq. | Associate Counsel

A $6.8 million settlement has been reached between the parties in The Children’s Place price fixing class action suit. The settlement was submitted for preliminary approval to California federal Judge Gonzalo P. Curiel on November 22, 2017. 

Named plaintiff, Monica Rael, originally filed the suit in February 2016. Rael argued that The Children’s Place violated California’s Unfair Competition Law, False Advertising Law and Consumer Legal Remedies Act. The plaintiff claims that the retailer mislead customers into believing they were getting a bargain on their purchases by labeling clothing as “marked down” from a higher “original” price. However, the suit argues that the listed prices represent nothing but a marketing ploy to boost sales and that the alleged “discounted” price is a phantom markdown since the retailer makes a separate line of clothing for its outlet location that is never sold at the original higher price.

The class covers all The Children’s Place customers who purchased “discounted” products from February 11, 2012 until present. According to the details of the settlement agreement, the defendant has agreed to distribute up to 800,000 vouchers worth six dollars each to class members. The Children’s Place has also agreed to send out 25% off a $100 purchase vouchers to class members depending on the ultimate size of the class.

The case is: Rael et al. v. The Children’s Place Inc., Case No.: 3:16-cv-00370, in the U.S. District Court for the Southern District of California.

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