Judge Certifies Class Action Over J.C. Penney Phantom Discounts

A federal judge has certified a class-action lawsuit that accuses J.C. Penney of marking up retail prices on apparel and accessories to trick shoppers into believing they were getting good deals when the items went on sale. In a decision on Monday, U.S. District Judge Fernando Olguin in Los Angeles said it was possible "in one stroke" to determine whether J.C. Penney's advertising practices caused shoppers in California to buy items at discounts that proved illusory. The complaint accused the retailer of running a "massive, years-long, pervasive campaign" to deceive shoppers about its pricing for private-label brands and outside brands, such as Liz Claiborne, sold exclusively by the retailer.