EDGE and Co-Counsel File Class Action Lawsuit against Lenovo for False Reference Pricing
Published on: August 31st, 2021
On August 31, 2021, EDGE and Capstone Law filed a class action lawsuit against Lenovo in the Northern District of California on behalf of a class of consumers alleging that the world’s largest computer manufacturer advertises false discounts on its website. As set forth in the Complaint, Lenovo artificially inflates the regular prices on its website and then advertises discounts based on those prices.
The Complaint details how Lenovo creates an illusion of savings on its website by displaying a sale price below a much higher regular price. Lenovo tells consumers the sale price results from “Instant Savings” or an “eCoupon,” but Lenovo’s products are almost always on sale.
“If a product is always on sale, then that’s just the regular price—it’s not actually a sale at all,” notes EDGE partner Daniel Rozenblatt, who represents the plaintiffs with co-counsel.
And the harm to consumers is real. As the Complaint notes, this practice artificially increases demand for Lenovo’s products and induces consumers to pay more for Lenovo’s products based on a false impression of their value. The lawsuit includes claims for violations of California’s consumer protection laws, fraud, and unjust enrichment, and seeks an order enjoining Lenovo from continuing to advertise false regular prices on its website, and monetary compensation for the Plaintiffs and putative class members.
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