Lawsuit alleges Patagonia misleads shoppers with deceptive pricing practices
New class action suit claims outdoor retailer inflates reference prices to create false impression of discounts, court documents show.
According to court documents filed on January 22, 2025, in the Southern District of California, outdoor retailer Patagonia faces allegations of engaging in deceptive pricing practices on its website. The class action lawsuit, filed by Joshua Orona, claims the company misleads consumers by advertising perpetual discounts based on inflated reference prices.
The complaint provides specific examples of Patagonia's alleged pricing practices, including a case of Women's Dirt Craft Bike Shorts advertised at $83.99, marked as discounted from an original price of $169. According to court filings, this same pricing remained unchanged for over three months between June and September 2024.
The lawsuit contends that Patagonia rarely, if ever, sells products at the higher reference prices displayed on its website. The filing presents data showing multiple products that maintained continuous "sale" prices for 98 days while never being offered at their purported regular prices.
Federal Trade Commission regulations prohibit retailers from advertising price reductions from artificial reference prices, as stated in 16 C.F.R. § 233.1. The lawsuit cites these regulations, arguing that Patagonia's practices violate federal guidelines requiring reference prices to represent actual, bona fide prices at which items were previously offered.
The legal action brings eight counts against Patagonia, including allegations of fraud, negligent misrepresentation, breach of contract, and violations of California's consumer protection laws. The complaint seeks class action status to represent customers nationwide who purchased products from Patagonia's website that displayed reference prices not offered within 90 days preceding their purchases.
Kyle McLean of Siri LLP, lead attorney for the plaintiff, argues in court documents that Patagonia's pricing scheme creates "a false sense of urgency" and misleads consumers about potential savings. The lawsuit alleges this practice leads shoppers to make purchases they might otherwise avoid or pay higher prices than they would if presented with accurate pricing information.
The case presents evidence of systematic pricing practices across Patagonia's website. Court documents detail 16 different products that maintained continuous "sale" prices for 98 days while never being offered at their stated reference prices during that period.
According to research cited in the legal filing, consumers often make purchasing decisions based on perceived discounts, with studies showing shoppers are more likely to buy immediately when they believe a sale price will end soon. The lawsuit argues Patagonia exploits this consumer behavior through its pricing practices.
Filed as case number '25CV0140 MMAAHG, the lawsuit seeks monetary damages, restitution, and injunctive relief to stop Patagonia's alleged deceptive pricing practices. The complaint requests both individual damages for the named plaintiff and class-wide relief for affected consumers.
The filing follows increased scrutiny of retail pricing practices. The court documents reference a Wall Street Journal article from August 24, 2023, highlighting concerns about deceptive reference pricing in retail. This lawsuit marks another chapter in ongoing legal challenges to retail pricing strategies that allegedly mislead consumers about discounts and savings.
Patagonia maintains corporate offices in Ventura, California, according to court documents.