TJ Maxx shoppers seek approval of $8.5M settlement in price tag lawsuit

By

Cassidy Mantor

Published
Sep 21, 2017

California shoppers suing TJX Corp in a class action suit over deceptive marketing practices on the company's price tags are now asking the court for an $8.5 million dollar settlement to cover the 8 million member class.

The lawsuit was filed in August 2016 in California federal court. In the suit, four shoppers sued TJX Corp., the parent company of off price retailers TJ Maxx, Homegoods and Marshalls. In the lawsuit, shoppers said the "Compare At" prices on price tags were misleading and enticed them to buy products they would not have otherwise purchased.

Shoppers purchased handbags, menswear, apparel and home goods in Riverside and LA Counties ranging in price from $5 to $55 beginning in 2011. They claim they would not have bought the products but for the perceived bargain they were getting.

Suing an off-price retailer for their price tag advertising strategy is nothing new. Massachusetts recently saw two similar lawsuits against Nordstrom Rack and Marshalls for similar issues, where shoppers claimed they were induced to buy because they felt they were getting a great deal. In fact they were not purchasing product at the deep discounts the price tag suggested.

TJX defended itself in the lawsuit and said the "Compare At" prices were its corporate buyers' best estimate of comparable prices. The court denied TJX's motion to dismiss however, pointing out that the shoppers could not be expected to know what every item retails for at multiple stores across California.

On Monday, the shoppers submitted a proposed settlement agreement to the court. TJX has fought back actively in this suit and the shoppers told the court they risked receiving "nothing" in damages due to their own legal fees and prolonged litigation. They have now asked the court for an $8.5 million dollar settlement offering merchandise credits to the entire class.