Thursday, May 30, 2013

Dirty Tricks & Tactics

Last week a California court reversed a previous decision and declared that Kohl's could in fact be sued over its questionable discounting practices.  The practice in question is one where the retailer marks up the original price in order to make the advertised discount look better to the shopper.

Regardless of whether the courts consider this to be false advertising or not, it's certainly obfuscating some truth about the product to the consumer and is definitely not a healthy long-term tactic.  Even when their customers end up purchasing a product, they're set up to eventually feel disappointed with their purchase when they discover the true value of the product.  There perception of being a deep discounter will slowly erode.

Kohl's may still win their case versus the plaintiff.  However, this case is a fitting reminder that just because they can do something and get away with it doesn't make it good business.

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