Pasadena Retailer Accused of Overpricing, Sued

A clothing store chain with a large retail shop in Old Pasadena that has been accused of cheating customers by overpricing products is being sued for $5 million.

Zara, a popular Spanish fashion retailer that celebrities such as Kim Kardashian and Selena Gomez are known to frequent, has reportedly been implicated in a “bait-and-switch” scheme where they set prices for their products in Euros and overcharge unwitting Americans at the register when it’s time to convert and pay.

Mark Geragos, a well-known local lawyer who represents the plaintiffs, told ABC7 that he estimates Zara has been overcharging customers $12-15 per item, which when added up, could tally up to over $1 billion.

Geragos also said that were instances where prices set in U.S. dollars were covered up by Euro prices that appeared cheaper to entice customers, but when they were converted, Zara would charge an amount above the exchange rate.

In a statement made to The Fashion Law, Zara representatives said they look forward to defending themselves against these allegations.

“Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States,” read the statement. “While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers.”

Zara’s Pasadena store is located at 132 W Colorado Blvd.