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New Best Buy Class Action Lawsuit

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A new Best Buy  class action lawsuit has been filed against Best Buy Co., Inc. (“Best Buy”) in the United States District Court for the Northern District of California, alleging deceptive advertising practices. Plaintiffs Leroy Porchia, Allegra Porchia, Marilyn Kaye, and Aaron Lamoree, acting individually and on behalf of a proposed class, accuse Best Buy of engaging in a widespread false discount advertising scheme involving televisions and major appliances.

Allegations Against Best Buy

False Discount Scheme

The plaintiffs allege that since February 2023, Best Buy has falsely advertised discounts on products in its retail stores and on its website. The advertised “Was” or “Original” prices are purportedly presented as Best Buy’s regular and normal prices. However, the plaintiffs claim that these reference prices are artificially inflated and rarely, if ever, reflect actual selling prices.

For example:

  • LG Refrigerator: Advertised as “Was $3,799.99” and “Now $3,199.99,” suggesting a $600 discount. However, Best Buy had never offered this refrigerator at the $3,799.99 price in the prior 90 days.
  • Sony TV: Promoted with a $350 discount off a fictitious “Was” price of $1,299.99. The product was consistently sold at $949.99 to $999.99 during the preceding 90 days.
  • Whirlpool Washer: Advertised with a “Was” price of $1,214.99, though it had not been sold at this price during the prior 90 days, typically retailing for $939.99 to $1,019.99.

This is the kind of thing we all know happens with big retailers like Best Buy.  It is the bait and switch. These practices mislead consumers into believing they are receiving significant savings on products when they are not.

Consumer Harm

The lawsuit claims that Best Buy’s deceptive practices harm consumers by:

  1. Inducing Purchases Under False Pretenses: Customers are led to believe they are receiving substantial discounts.
  2. Overpayment: Consumers pay more than they otherwise would have, as the products’ market value is lower than the represented prices.
  3. Loss of Trust: Customers are deprived of the ability to make informed purchasing decisions based on accurate price information.

Legal Violations

The lawsuit asserts that Best Buy’s practices violate California’s consumer protection laws, including:

  1. Consumers Legal Remedies Act (CLRA): Prohibits false advertising and misrepresentations about price reductions.
  2. False Advertising Law (FAL): Prohibits untrue or misleading advertising, including false claims about discounts.
  3. Unfair Competition Law (UCL): Bans unlawful, unfair, and fraudulent business practices.

The plaintiffs also reference Federal Trade Commission (FTC) regulations, which prohibit fictitious pricing and deceptive discount practices. Best Buy’s conduct allegedly breaches these rules by advertising reference prices that were not genuine prevailing prices.

Plaintiffs’ Claims

The plaintiffs purchased products from Best Buy based on misleading price representations. Specific cases include:

  • Leroy and Allegra Porchia: Purchased a washer and dryer advertised with significant discounts. Subsequent investigation revealed that the purported “Was” prices were never actual selling prices.
  • Marilyn Kaye: Bought an LG washer and dryer under similar deceptive circumstances, relying on the advertised discounts.
  • Aaron Lamoree: Purchased a washing machine advertised as discounted by $300 from an inflated “Was” price.

In each instance, the plaintiffs argue they would not have made the purchases at the advertised prices had they known the true value of the products.

Class Action Scope

The proposed class includes all California residents who purchased televisions or major appliances from Best Buy that were advertised with discounts since February 2023. The plaintiffs seek:

  • Restitution and Disgorgement: Refunds for overpayments and disgorgement of profits derived from the deceptive pricing scheme.
  • Public Injunctive Relief: An order requiring Best Buy to cease its false advertising practices to protect consumers and promote fair competition.

Broader Implications

The lawsuit emphasizes the harm caused by deceptive pricing, not only to consumers but also to honest competitors. By inflating reference prices, Best Buy allegedly gains an unfair competitive advantage, undermining businesses that adhere to truthful advertising practices. While people feel good about getting a “deal” it is really no deal at all.  Ultimately, these cases are about consumers being tricked.

Legal Context

California law, supported by the FTC’s guidelines, mandates that reference prices must reflect actual, recent market prices. Businesses are prohibited from using fictitious former prices to create the illusion of discounts. Courts have consistently held that these practices mislead consumers and distort market dynamics.

Current Status

As of now, the case is in its early stages. The plaintiffs’ attorneys are gathering evidence, including pricing data and screenshots, to substantiate their claims. The lawsuit highlights a broader need for accountability in retail advertising practices.

Note for Readers

This summary is provided for informational purposes only. While it outlines significant allegations and legal issues, it does not constitute legal advice or an invitation to join the lawsuit. Consumers with concerns about similar issues should seek advice from qualified professionals or consumer protection agencies. Our firm does not handle consumer class action lawsuits.