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Boohoo Settles Inflated Prices Lawsuit for $197 Million

Boohoo
Manchester-based retailer Boohoo, owner of brands PrettyLittleThing and NastyGal reached a $197 million settlement for a lawsuit accusing the retailer of inflated prices. (Shutterstock)

Manchester-based retailer Boohoo, owner of brands PrettyLittleThing and NastyGal reached a $197 million settlement for a lawsuit accusing the retailer of inflated prices, it announced on Wednesday.

The settlement money will be split between 9.4 million individuals, who will receive the funds in the form of gift cards; each will receive a $10 gift card plus free shipping totalling $17.45 per gift card, according to the claims administrator, KCC Class Action Services.

In the class action suit, the plaintiffs alleged the fast-fashion retailer artificially inflated the prices of its garments, meaning the company never sold the items at its original price on its US website and used markdowns to give the customer the impression they were scoring a deal.

Customers who are eligible for a gift card must be a California resident who purchased products from the retailers between April 2016 and June 2022.

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The voucher can be applied to any item on the three fast fashion sites and has no restrictions. Those who purchased from multiple Boohoo-owned brands will receive a gift card from each site they purchased from. It’s anticipated the retailer will have to distribute over 11.3 million gift cards.

Learn more:

Boohoo Forecasts Revenue Decline as Consumers Spend Less

Boohoo Group Plc forecast a double-digit decline in revenue as inflation-squeezed consumers cut back on buying clothes online and return to stores that were shut during Covid lockdowns.

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