Outlet stores

Why Factory Outlets Aren’t As Good As You Think

Excess designer clothes from last season at a great price – that’s what you find in outlet clothing stores, right? Wrong. The little-known truth about factory outlets is that most of their merchandise was actually designed to be sold only in outlets:

Report for Withdrawn, Chavie Lieber spoke to shoppers who weren’t worried about lower quality outlet clothes because they cared more about design and branding. But as Lieber noted:

The formula these outlets use – designers sweetening their original concepts with inferior materials and production methods to get a lower price – wouldn’t seem so devious if buyers knew what they were buying.

The point is, most casual shoppers probably don’t know that outlet stores sell clothes that never sold in high-end retail stores. And that’s exactly what the brands wanted.

A class action lawsuit against Kate Spade & Co. recently highlighted the tactics used by fashion brands to maintain widespread confusion over the origin of clothing.

The complaint accuses Kate Spade of advertising bogus discounts in her outlet stores, prompting complainants to purchase items they claim were significantly below the original price:

[T]These so-called original prices “our price” and the corresponding price reductions and savings were false and misleading, as the prevailing retail price for the handbag during the three months immediately preceding the purchase of this item by plaintiff no. was not more than $ 142.00 and not the original $ 355.00. our award ‘represented by Kate Spade. The plaintiff would not have purchased the handbag in the absence of Kate Spade’s false statements.

Michael kors installed a similar lawsuit last year, and TJ Maxx is also facing legal action after it became clear that the store staff were simply guessing the full retail item value and marking the discount based on that estimate.

Watch the video above for more on ethically murky tactics to watch out for when shopping.

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