A popular discount retailer has been hit with a class action lawsuit.
T.J. Maxx is accused of advertising discounts that are not as good as they seem.
Full disclosure: I love T.J. Maxx. I'm there almost every weekend. As for whether shoppers are getting deals as good as they think they are, maybe not according to the lawsuit.
But customers we spoke with say the deals are still darn good, although the plaintiffs in this lawsuit claim they've suffered damages.
Still, at T.J. Maxx, many will agree, everything's priced to sell.
I asked one shopper who was leaving the store how she did, and she said, "I couldn't be happier.”
And when I asked another what she thinks of when she hears T.J. Maxx? Her response was, she said "Smart Shopper."
From clothing, to home goods, shoppers showed me discounts that were to die for.
A designer blouse that had a "Compare At” price of $200, selling for $99. She told me, "It's fun to get a bargain."
But are you really?
The company is accused of violating the Deceptive and Unfair Trade Practices Act for leading consumers to believe its prices were much lower than they actually are.
And a class action lawsuit filed on behalf of 4 shoppers, alleges the company:
- Uses "Compare At" prices, to advertise a phantom markdown.
- That the comparative price is an unverified estimate.
- And that the item's actual value is far less.
One shopper responded to the lawsuit, calling it “a little deceptive."
We did find several items online like Just Cavalli men's sunglasses, where the “Compare At” price at T.J.’s was $100 and up, but we found them on a website called Fruugo for $69.
The same with a Kasper dress where the “Compare At” price was $78. Walmart was selling it for $50.
But just try telling that to die hard "Maxinistas," as T.J. Maxx shoppers are called.
One woman told me “They're wrong. I would like to sit on that jury because the prices are fabulous.”
At the T.J. Maxx store in Beachwood, a shopper showed us the original manufacturer’s price on a blouse that was $186 more expensive than it was at T.J. Maxx.
Regardless if the discounts are not as good as advertised one shopper told me, "As long as you get a good bargain. I don't care.”
TJX Companies, which owns T.J. Maxx, released this statement in response to the lawsuit:
At T.J. Maxx, we are committed to delivering exceptional value to our customers every day – it is the foundation of our business. We tell our customers what we mean by “compare at” prices, both through signage in our stores as well as language on our T.J. Maxx website.