For Teen Vogue, by Alyssa Hardy.
It could mean a big payday for U.S. customers.
Zara is embroiled in yet another lawsuit, but this legal dispute could mean a big payday for its customers. According to The Fashion Law, shopper Devin Rose is suing Zara for $5 million dollars on account of their “deceptive pricing” structure.
The case hinges on the fact that Zara lists their prices in Euros, which Devin believes is a tactic to lure U.S. customers in with a lower number. According to the lawsuit, when Zara’s prices are converted to American dollars, the numbers don’t adhere to the actual exchange rate — in fact, they’re significantly higher. It’s a stealthy way for the brand to overcharge for their garments, Devin claims.
The lawsuit cites a recent purchase Devin made in which “the actual euro-dollar exchange rate would have resulted in €9.95 shirts costing approximately $11.26 each.” Zara reportedly charged Devin “$17.90 per garment, a markup of nearly 60%.”
If Devin wins the case, Zara’s U.S. customers may be entitled to a settlement. The retail behemoth released a statement to The Fashion Law disputing Devin’s claims: “Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States. While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers. We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defense in due course through the legal process.” Devin’s counsel responded, calling Zara’s statement “bizarre and desperate.”
In July, the fast fashion brand was accused of copying designs from indie artist, Tuesday Bassen. After spending over $2,000 in legal fees, Zara addressed the suit in a dismissive statement. Watch this space for updates as both legal disputes play out.
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