Under Armour Faces New Class Action Lawsuit Alleging Deceptive Discount Practices
Under Armour is under scrutiny once again as the brand faces a proposed class-action lawsuit claiming it employs a deceptive "false discounting scheme" at its Factory outlet stores and website. The complaint, filed on October 29 by New York resident Linda Rappaport in the Eastern District Court, alleges that Under Armour’s outlet merchandise is specifically manufactured for its outlet stores and online outlet, with a quality purportedly lower than that of items available in regular Under Armour stores and websites. This, Rappaport contends, misleads consumers into believing they are securing “huge savings and high value” through advertised discounts.
According to the complaint, nearly all merchandise at Under Armour’s Factory outlet stores is created exclusively for these outlets and is not carried in standard retail locations. Despite this exclusivity, outlet store products display an "MSRP" (manufacturer’s suggested retail price), and online outlet items show an original price that is crossed out next to a discounted price. Rappaport argues that these reference prices give a false impression of the items’ value, deceiving customers into thinking they are receiving a significant discount compared to regular retail prices.
The complaint states, “The Under Armour Factory products sold in both brick-and-mortar Under Armour Factory stores and on the outlet site are never—or virtually never—offered for sale or actually sold at their ‘original’ or ‘price tag’ prices.” Rappaport’s legal team argues that this strategy misleads consumers into paying more than the items’ actual worth, based on the incorrect belief that they were once sold at the listed original price.
Rappaport and her attorneys assert that this pricing scheme violates both New York’s False Advertising Law and Consumer Protection from Deceptive Acts and Practices Act. They are pushing for a class action that could represent “hundreds of thousands of individuals” across New York who have purchased items from Under Armour’s Factory outlets during the relevant period. They seek a jury trial and are pursuing declaratory and injunctive relief, along with actual, punitive, and statutory damages for all class members.
This lawsuit echoes a similar class action brought against Under Armour in 2020, which alleged that the brand used artificially high original prices on outlet items, creating the illusion of a substantial discount. The outcome of this new case could set a significant precedent for retail discounting practices and transparency across the industry.
