A California consumer has taken legal action against an online retailer for allegedly engaging in deceptive pricing practices. Jessica Argueta filed a complaint on April 7, 2025, in the Superior Court of California, County of Ventura, accusing MerchNow, LLC of violating state laws by advertising fictitious regular prices and corresponding phantom discounts on its website.
The lawsuit claims that MerchNow advertises inflated reference prices to create the illusion of a discount, which is misleading to consumers. According to the complaint, this practice is illegal under California law as it results in a sham price disparity. Argueta's legal team argues that these deceptive tactics are designed to mislead customers into believing they are receiving significant savings when purchasing products from MerchNow's website. The plaintiff alleges that she purchased a "Wings — Black T-Shirt" on February 21, 2025, for $9.00 after being led to believe it was discounted from a false reference price of $25.00.
Argueta's complaint outlines how MerchNow's pricing strategy violates California's False Advertising Law (Cal. Bus. & Prof. Code § 17501) and the Consumers Legal Remedies Act (Cal. Civil Code § 1750 et seq.). These statutes prohibit advertising former prices unless they were the prevailing market prices within three months preceding the advertisement or unless clearly stated otherwise. The plaintiff contends that MerchNow did not adhere to these requirements and used artificially inflated reference prices to deceive consumers.
In support of her claims, Argueta references scholarly research indicating that such deceptive pricing practices can significantly influence consumer behavior by enhancing perceived value and willingness to purchase at inflated prices. The lawsuit also highlights how these tactics induce customers to make purchases they might not have made if truthful information had been provided.
Argueta seeks various forms of relief from the court, including damages and restitution for herself and potentially other affected consumers if a class action is pursued later. She argues that equitable remedies are necessary because legal damages alone cannot adequately address the threat of future harm posed by MerchNow's continued deceptive practices.
Represented by Scott J. Ferrell and Victoria C. Knowles from Pacific Trial Attorneys, Argueta aims to hold MerchNow accountable for its alleged misconduct and seeks statutory damages along with attorneys' fees and costs as permitted by law. The case is assigned Case No. 2025 CL BT041683 in the Superior Court of California, County of Ventura.