Michael Kors settles U.S. lawsuit alleging deceptive price tags

Michael Kors Holdings Ltd (KORS.N) agreed to pay $4.88 million and change its sales practices to settle a class action lawsuit claiming it used deceptive price tags at its outlet stores to fool shoppers into believing they were getting big bargains. Shoppers said the suggested retail prices were artificial because the tagged products had been made exclusively for Michael Kors outlets, and the London-based fashion house never intended to sell them at those prices. As part of the settlement, Michael Kors will replace "MSRP" with "Value" on its price tags and display signage explaining that term, or stop using reference prices for products made exclusively for its outlets.

Michael Kors settles U.S. lawsuit alleging deceptive price tags source: http://finance.yahoo.com/news/michael-kors-settles-u-lawsuit-203602728.html