Boohoo 10 Gift Card Settlement Over Alleged Misleading Reference Pricing Discounts

The class action against Boohoo, BoohooMAN, PrettyLittleThing, and Nasty Gal focused on “reference pricing”—the practice of showing a higher “original” price next to a discounted price to signal a bargain. Shoppers alleged these brands routinely advertised steep markdowns from inflated or non-genuine reference prices, potentially making everyday prices look like limited-time deals. The case covered online purchases made outside California during specific periods (Boohoo/BoohooMAN and PrettyLittleThing from April 1, 2016 to June 17, 2022; Nasty Gal from February 28, 2017 to June 17, 2022), with California purchases excluded. The lawsuit was filed to challenge whether the advertised “was/now” or similar discount claims were misleading and violated consumer-protection laws by creating a false sense of savings. Without admitting wrongdoing, the companies agreed to a nationwide settlement that was approved, providing eligible customers automatic $10 gift cards per brand (up to three total), with free shipping and consumer-friendly terms like no expiration and no minimum purchase—distributed by email with no claim form required. Its significance is less about cash payouts and more about how retailers communicate discounts, reinforcing that marketing claims about “original” prices can be scrutinized when they influence buying decisions. This dispute fits a broader wave of reference-pricing lawsuits in retail, where plaintiffs argue that “compare at,” “MSRP,” or perpetual markdowns can mislead if the higher price wasn’t a bona fide, prevailing price for a meaningful period. Regulators and courts often look to standards reflected in FTC guidance on deceptive pricing and state “former price” rules (commonly requiring that a claimed former price be the actual, recent price offered in the ordinary course of business) when evaluating these promotions. As with similar cases involving department stores and e-commerce brands, the settlement underscores growing pressure on fashion and fast-fashion retailers to substantiate discount narratives and avoid pricing strategies that could be interpreted as manufacturing savings rather than offering them.