Kate Spade Outlet Class Action: Is "Comparable Value" Real?

What Is "Comparable Value" at Kate Spade Outlet—And Is the Discount Even Real?

If you have shopped at Kate Spade Outlet, you have seen it on nearly every item: a "Comparable Value" price, a big percentage off, and a sale that never seems to end. Warren Terzian LLP has filed a class action lawsuit alleging that those "Comparable Value" prices are fabricated—inflated numbers that Kate Spade Outlet made up and never actually charged, so the advertised discounts are not real.

If you purchased from katespadeoutlet.com in California and are interested in exploring your rights to recover money, please tell us about your purchases using the form on our Kate Spade Outlet class action page.

What does "Comparable Value" even mean?

That is a fair question—and it is one Kate Spade Outlet never answers.

When you look at an item on katespadeoutlet.com, you often see something like "Comparable Value $119," a lower price like "$39," and a label like "67% off." The natural reading is that the item is worth $119, and today you are paying a fraction of that. That perceived bargain is often the reason people buy.

Our complaint alleges that the "Comparable Value" is not a real price at all. It is not what the item sold for last month. It is not what it sells for anywhere else. We allege it is a fabricated, inflated number whose only purpose is to make the price you actually pay look like a steep discount. A discount from a made-up price is not a discount.

The tell: the "Comparable Value" is sometimes higher than the real Kate Spade price

Here is the part that is hard to explain away.

Kate Spade Outlet does not sell the same products as a Kate Spade boutique. Our complaint alleges that outlet merchandise is manufactured specifically for the outlet, is of lower quality in material, stitching, and construction, and carries a small spade logo not found on regular Kate Spade goods.

Yet the outlet's "Comparable Value" prices are sometimes higher than the actual retail prices of nicer Kate Spade boutique items. For example, our complaint compares a credit card wristlet sold at a Kate Spade boutique for $98 against a similar outlet wristlet advertised with a "Comparable Value" of $119—about 20% more for the lower-quality outlet version. A boutique leather backpack listed at $358 is dwarfed by an outlet backpack's "Comparable Value" of $499, nearly 40% higher.

If the outlet "value" is higher than what the better version actually costs at the real store, our complaint alleges, the "value" is not a value. It is a number designed to sell.

How can they always be on sale?

Our complaint alleges the sale never ends because it never really began.

We allege Kate Spade Outlet ran the same "limited time" promotions over and over—"up to 70% off," and "up to 70% off plus an extra 20% off"—so consistently that the "sale" is simply the everyday price. When a discount is always available, it is not a discount.

The complaint traces specific items over a four-month window. One handbag advertised with a "Comparable Value" of $299 was never offered anywhere near that price—its actual price bounced between roughly $75 and $115 the whole time. A backpack shown at a "Comparable Value" of $359 actually ranged from about $89 to $139. A shoulder bag pegged at a "Comparable Value" of $399 never exceeded roughly $169.

Does California law prohibit this?

Yes. California has restricted phony discounts for decades. Our lawsuit brings these claims:

• False Advertising Law (Business & Professions Code §§ 17500). California law says the "worth or value" a seller advertises must reflect the item's actual prevailing market price. When a company sells goods made only for its own outlet, the prevailing market price is what that company actually charges for them—not a "Comparable Value" it invents.

• Unfair Competition Law (Business & Professions Code § 17200), which prohibits unlawful, unfair, and fraudulent business practices.

The principle is simple: if a retailer tells you an item is worth more than you are paying, that has to be true. Our complaint alleges it is not.

Defendants dispute these allegations, and the court has not decided them.

Who does the lawsuit cover?

The cases (technically there are two of them) are pending in Los Angeles County Superior Court against Tapestry, Inc. and its Kate Spade Outlet operating companies—proposes a class of California residents who purchased items from katespadeoutlet.com that were advertised as discounted from a "Comparable Value" price, and who have not received a refund or credit. One case covers online purchases from Kate Spade Outlet’s website, the other covers purchases in Kate Spade Outlet’s California stores.

The court has not yet certified a class; that is a later step in every class action. And here is something many people do not realize: you do not have to sign up to be part of a class. If a class is certified and there is a recovery, class members are covered automatically.

Then why contact us? We may be adding class representatives.

Every class action is led by class representatives—real customers who stand up for everyone else in the case. A class representative is named in the lawsuit, stays informed as it moves forward, and may sit for a deposition. Their role is to make sure the class's interests come first.

We are potentially adding class representatives to this case, and we are looking for California shoppers who bought from katespadeoutlet.com and relied on its "Comparable Value" discounts. If that is you, we would like to hear from you. When class actions succeed, courts may also approve a service award for class representatives in recognition of their work, in the court's discretion and on top of what they recover as class members.

What to do if you shopped at Kate Spade Outlet online

1. Tell us about your purchases. Completing the form takes about two minutes, costs nothing, and creates no obligation.

2. Keep your records. Order confirmation emails, receipts, your katespadeoutlet.com order history, and any screenshots showing "Comparable Value" prices or "% off" labels.

3. Write down what you remember. Which items you bought, roughly when, and what "Comparable Value" and discount were advertised.