Carter's prices not deceiving, rules court

US: Carter's prices not deceiving, rules court

By Joe Ayling | 16 March 2010

An appeals court in the US has cleared children's wear retailer Carter's of accusations it used deceptive pricing, after two customers filed separate lawsuits.

The US Seventh Circuit Court of Appeals confirmed yesterday that Carter's did not breach its sales contract with two customers - Su Yeun Kim and Gina Polubinski.

They had claimed being lured into buying clothes at the promise of huge savings on the regular price of items, which they say was inflated in the first place.

Between June 2005 and March 2008, the plaintiffs reportedly purchased children’s clothing from several Carter’s retail outlets located in Illinois.

The plaintiffs said the promised savings in the store, like 30% off items, were artificial because originally suggested prices that Carter’s put on its price tags were fictitious, the filing said.

However, the court found that Carter’s fulfilled its obligations under the straightforward, everyday sales contract described in the complaint, and "gave the plaintiffs the benefit of their bargain".

The circuit judge added: "The plaintiffs agreed to pay a certain price for Carter’s clothing, which they do not allege was defective or worth less than what they actually paid.

"Nor have the plaintiffs alleged that, but for Carter’s deception, they could have shopped around and obtained a better price in the marketplace."

Click here to read the full lawsuit.