Zara slapped with $5 Million lawsuit for allegedly swindling customers.

Zara has been in the papers for all the bad reasons a number of times. Racial profiling as well as stealing designs are some of the reasons in the past however, this time, they have been hit with a lawsuit for allegedly swindling customers.

In May, a man by the name of Devin Rose bought three shirts from a Zara store in Los Angeles, California. According to US Weekly the lawsuit stated that “the actual euro-dollar exchange rate would have resulted in his €9.95 shirts costing approximately $11.26 each. Instead, however, Zara charged Mr. Rose $17.90 per garment, a markup of nearly 60%.”

However, the suit gets interesting here because: if approved, folks who ever bought falsely-priced garments from Zara can enter the case and split the settlement amount. According to The Fashion Law, Zara USA released a statement saying that it “denies any allegations that the company engages in deceptive pricing practices in the United States.” They stated that:

While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers. We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defense in due course through the legal process.

In response, Rose and his legal team said:

Zara’s response so far has been beyond bizarre and desperate. Their unlawful conduct is not up for debate, as anyone who goes into a Zara store in the United States can see with their own two eyes that Zara is pricing clothing in euros and charging consumers drastically above the lowest tag price in dollars which is illegal. U.S. laws require that a retailer charge the consumer the lowest tag price — not grossly inflated amounts using fake conversion rates. If Zara wants to double down on its duplicity, instead of acting like a responsible corporate citizen and fixing the mess of its own making, they should be prepared to face the wrath of the American consumer and the full force of the law.

Source: Hypebeast