Boohoo has settled a class action in the USA which had asserted that the online fashion retailer had artificially inflated prices in order to entice customers with the offer of discounts. This effectively meant that the brands involved – boohoo MAN, NastyGal and PrettyLittleThing had never sold the garments involved at the original price on its US website which is in breach of US law.
Some 9.4 million customers in the US are believed to qualify for compensation which will take the form of gift cards and free shipping – this will comporise a US $10 gift card plus US $7.45 of free shipping. Vouchers can be used at all three of aforementioned websites.
The infringement is understood to potentially cost the Manchester headquartered business US $197m to settle.