Michael Kors has agreed to settle a misleading discounts class action that accused its outlet stores of advertising fake original prices and inflated markdowns on apparel, handbags, shoes, and accessories.
The settlement, which is now closed to new claims, offers eligible shoppers a merchandise certificate worth up to $30 for use at Michael Kors outlet locations. What the Lawsuit Claimed The lawsuit alleged that Michael Kors outlet stores used deceptive reference pricing by showing items with a higher original
or compare at price and a lower sale price, even though the products were never actually sold at the higher price.
Plaintiffs said this created the false impression of a steep discount and led customers to believe they were getting a bargain, when in reality they were paying what was effectively the regular outlet price. Michael Kors did not admit any wrongdoing as part of the settlement, but agreed to resolve the case and provide compensation rather than continue litigating.
The settlement applies only to outlet stores, not to full price boutiques or other channels, reflecting how heavily outlet pricing and signage rely on compare at and ticketed price strategies. Who was Eligible The settlement covers individuals who made a qualifying purchase at a Michael Kors outlet store between May 10, 2019 , and November 14, 2025 .
Shoppers did not need to show that they relied on any specific sign or tag; they only needed to show that they bought merchandise during the class period at an outlet location where the alleged misleading discounts appeared. Within the broader class, California and Oregon KORSVIP members who made qualifying purchases at outlet stores in those states were…
