Nike has never been shy about filing lawsuits against other companies or former employees, but now the sportswear giant is on the receiving end. On Monday, a $5 million class action lawsuit was filed against Nike in U.S. District Court.
According to KOIN6, the Swoosh faces allegations of being deceptive and misleading in its labeling and marketing of items sold at its outlet stores.
The lawsuit states: “Nike misrepresented the existence, nature and amount of price discounts on products sold in Nike Outlet stores by purporting to offer discounts off of a false ‘Suggested Retail Price,’ which the Plaintiff understood to be short for the commonly used retail phrase: Manufacturer’s Suggested Retail Price (MSRP.)”
The lawsuit claims “Nike led consumers to believe that its MSRPs represented authentic price information about the products they purchased. In reality, Nike manufactures the Nike Outlet Products for exclusive sale at its Nike Outlets and always sells these goods for the advertised “OUR PRICE,” never the MSRP.”
Although Nike said it would not comment on the pending case now, the brand will definitely have some explaining to do in court.
Read the full lawsuit here.
