LON­DON:

The Pak Banker - - COMPANIES/BOSS -

Bri­tish lux­ury fash­ion brand Burberry (BRBY.L) is to face a class ac­tion law­suit in the United States, claim­ing it used mis­lead­ing price tags at its out­lets stores to fool shop­pers into be­liev­ing they were get­ting big bar­gains. The com­pany, which specif­i­cally man­u­fac­tures some of the prod­ucts for its out­let stores, is ac­cused of in­ten­tion­ally pre­sent­ing false price in­for­ma­tion on prod­ucts that have never been sold in its retail stores to mis­lead cus­tomers. Out­let stores typ­i­cally sell ex­cess or old stock at a dis­count, al­though some re­tail­ers also man­u­fac­ture goods specif­i­cally for them. The law­suit in the lat­est in a long line of cases ac­cus­ing lux­ury re­tail­ers of mark­ing up goods sold in out­let stores with made-up man­u­fac­turer prices. Last year, U.S. re­tailer Michael Kors (KORS.N) agreed to pay $4.88 mil­lion and change its sales prac­tices to set­tle a sim­i­lar class ac­tion law­suit af­ter it was ac­cused of cre­at­ing an "il­lu­sion" of deep dis­counts.

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