Nike Has Been Accused Of Distorting Its Product Price For Compensation Of $5 Million.

NIKE is a world-famous sports brand and its headquarter is located in Beaverton, Oregon, USA.

The company produces all kinds of sporting goods, such as clothing, footwear, sports equipment and so on.

Recently, the American sports giant

In a class action lawsuit, the case alleged that Nike used the false product price tag in the brand discount store to mislead the consumers to purchase, and confusing the original price of the consumer product, involving the amount of $5 million.

On Monday, the case was heard in a regional court in Oregon, USA. Judge Monika Taylor Chen accused Nike company of distorting its selling price in discount stores and fabricating similar "manufacturer's suggested retail price".

False concept misleads consumers to shop.

The complainant pointed out that the practice of Nike led consumers to believe that the real price of the products they purchased was the price tag, whereas the products sold at Nike discount stores were all underwritten products, and the price tag was not true manufacturer's suggested retail price, which was misleading and deceiving consumers, because the manufacturer's suggested retail price was not really representative.

The selling price of the product.

Monika Taylor points out that Nike knows that consumers prefer to buy discounted goods, and is well aware of impulsive consumer behavior when consumers predict greater discount.

Therefore, the product price tag of the discount store is deliberately designed to mislead consumers, so that they believe that the product is very favorable.

But the "suggested retail price" on Nike discount products is just a false number, which is used to deceive consumers to buy.

Monika Taylor emphasizes that Nike's behavior is directly contrary to the Federal Trade Commission Act in addition to violating national laws. The Act expressly prohibits unfair or deceptive practices, especially prohibiting false advertising.

The court finally sentenced the Nike company to compensate the plaintiff for $5 million.