HomeGoods advertises its ability to offer “department store” brands at way less than department store savings. Maybe sometimes they do. But when you go shopping there looking for a discount, don’t just take their word for it.
On July 23, 2015, a federal class action lawsuit was filed against HomeGoods, a large discount retailer that has stores nationwide. What did they do wrong?
Well, like all stores, their products have tags or stickers announcing their price. In addition to the price, though, HomeGoods adds a special “Compare At” price, which is invariably much higher than the HomeGoods price. The purpose of the “Compare At” price is, of course, to make you think that a $10 coffee mug really is worth $50. What HomeGoods doesn’t tell you, though, is that the “Compare At” number is not based on any real market research, and you probably won’t find any stores actually charging the super-high “Compare At” price.
In other words, they’re false advertising the savings that you get by shopping there. That is why they’ve been sued. The lawsuit seeks to require them to either make their labels accurate, or drop them altogether.
This doesn’t mean that HomeGoods doesn’t have good deals. I’m sure they do. In fact, my wife will probably check it out and come home with bags of “deals.”
So just be aware: if you see a coffee mug priced at $10 with a “$40 value,” don’t fall for it.
The text of the HomeGoods Lawsuit can be found HERE:
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