
A class action lawsuit alleges that Shein’s widespread discounts amount to fraud, deception, and false advertising. The shopping experience features large coupons and steep markdowns that can seem unbelievable, such as high-priced items shown as drastically reduced. The lawsuit claims the reference prices used to calculate discounts are “fake” because Shein’s products are rarely or never sold at the full listed price. It cites historical price data from AliPrice.com and Microsoft Shopping to support the claim. The plaintiffs compare the pricing strategy to stores that repeatedly advertise “going out-of-business” sales without actually closing. The lawsuit seeks outcomes similar to a prior French fine related to misleading pricing practices.
"A new class action lawsuit against Shein alleges that the company's use of discounts on nearly every item amounts to fraud, deception and false advertising."
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