Lawsuits Target Black Friday Phantom Discounts

Beware of Black Friday discounts this holiday season, consumer advocates warn. According to the ABA Journal, unhappy shoppers have filed lawsuits claiming they bought merchandise touting discounts that turned out to be illusory. The Wall Street Journal reports that retailers often set starting retail prices so high that the discounted price will give them the profit margins they want— a strategy that isn’t deceptive according to Federal Trade Commission guidelines. Among the retailers facing suit over alleged phantom discounts are J.C. Penney, Kohl’s and Jos A. Banks Clothiers.