The suit says the company used artificially inflated pricing to calculate discounts
of ConsumerAffairs- California resident Drew Hunthausen has filed a class action lawsuit against Crocs, claiming the company falsely advertised regular prices on its website to create phantom discounts
- The lawsuit alleges Crocs used artificially inflated "reference prices" to make customers believe they were getting substantial discounts when they actually weren't
- This marks the second major class action against Crocs in recent months, following a December 2024 lawsuit over shoe shrinkage issues
Popular footwear retailer Crocs is facing a new class action lawsuit in California state court, with a plaintiff alleging the company engaged in deceptive pricing practices on its website.
Drew Hunthausen filed the lawsuit against Crocs Retail LLC in Los Angeles County Superior Court, claiming the company violated California's False Advertising Law and Consumers Legal Remedies Act through its online pricing scheme.
The allegations
According to the lawsuit, Crocs created "fictitious regular prices" that served as inflated reference points, allowing the company to present actual prices as discounted when no genuine markdown had occurred. Hunthausen argues this constitutes "a sham price disparity that is per se illegal under California law."
The plaintiff claims Crocs knowingly used these artificially inflated prices as part of a deliberate strategy to mislead consumers into believing they were receiving substantial savings. "The reference price is, therefore, an artificially inflated price. In turn, the advertised discounts are nothing more than phantom markdowns," the lawsuit states.
Hunthausen contends that this deceptive pricing scheme induced customers to purchase products they otherwise would not have bought, or to pay more than they would have if Crocs had been truthful about its sales prices.
Seeking class action status
The lawsuit seeks to represent a class of individuals who purchased Crocs products from the company's website while in California within the statute of limitations period, specifically those who bought items at purported discounts from higher reference prices.
Hunthausen is demanding a jury trial and requesting declaratory and injunctive relief, along with statutory damages and attorneys' fees and costs.
This lawsuit represents the second major legal challenge facing Crocs in recent months. In December 2024, the company faced another class action lawsuit alleging it failed to disclose that its Croslite shoes were made of material that shrinks when exposed to ordinary heat or direct sunlight.
Legal representation
The plaintiff is represented by Scott J. Ferrell and Victoria C. Knowles of Pacific Trial Attorneys APC. The case is officially titledHunthausen v. Crocs Retail LLC, Case No. 2:25-cv-04199, in the Superior Court for the State of California, County of Los Angeles.
Crocs has not yet publicly responded to the allegations in this latest lawsuit.
Posted: 2025-06-10 17:51:47
