Michael Kors pays $4.8m in lawsuit
Michael Kors has agreed to settle a lawsuit over misleading price tags.
The American designer's company agreed to pay $4.8 million to settle a court case filed by a disgruntled customer.
Legal papers were originally filed in July last year by a Californian woman called Tressa Gattinella. She claimed that she "was induced" to buy a pair of Side Anklez White jeans that were labelled with a $120 MSRP (Manufacturer Suggested Retail Price) tag and priced at $79.99 because she thought she was saving 33 percent.
But she believes that the store created an illusion of a discount when there was none, as the brand manufactures products specifically for its Kors Outlet stores so putting a retail price comparison on the tag is "false and fraudulent."
Now that Michael Kors has agreed to the settlement, it now needs court approval. The brand has also agreed to stop labelling its price tags in that way. Instead it will provide in-store displays explaining pricing terms and MSRP could be replaced with a "value" designation.
While the 55-year-old deals with his legal woes, he is continuing to focus on his successful clothing and accessories lines. Michael recently opened up to InStyle Australia about how pleased he was that good tailoring was back on trend.
"Update your wardrobe with a suit," he advised. “The word suit for women is like, ‘A suit? I don’t own a suit. I wear a dress or I wear sportswear.’ I think the whole idea of a feminine suit, something that is shaped, curvy... there’s something about the return to tailoring.
"We haven’t shown tailored suits with a skirt for many seasons. The last time we showed it was Mrs [Michelle] Obama’s suit [for the State of the Union in January]. I think it’s something fresh for women to have in the closet and a nice alternative to being in a dress.”