Akira, a U.S.-based company, is facing a class action lawsuit for using misleading advertising in its e-commerce. The lawsuit alleges that the company has violated consumer rights with its almost continuous marketing campaign. Akira advertised its products at apparently discounted prices, when in fact they were inflated prices, misleading and in violation of the Consumer Protection Act. That is why this lawsuit is intended to represent all those who have been affected by the practices of this company.
Akira
In 2002, a store of this brand was first opened by owners Eric Hsueh, Erikka Wang, Gordon Liao and Sarah Hughes. It was a women’s clothing boutique in the Bucktown neighborhood of Chicago. It currently has 30 stores and a growing e-commerce platform.
Consumer Protection Act
The aim of the Consumer Protection Law is to protect the buyer of goods and services from possible irregular commercial practices, consumption of defective products or being victims of misleading advertising. They are the rules that companies must comply with in the face of the consumer, ensuring that the information given about their products or services is clear, truthful, that their products are safe and of quality. In case of non-compliance, the consumer has the right to complain to the company or, failing that, to the authorities.
Akira class action lawsuit
Akira’s case has brought together a group of people affected by alleged malpractice. Stephanie Cruz is one of those involved in the lawsuit. According to her, the company has made use of misleading advertising and unfair competition. What exactly has the company done? Through its e-commerce website, it has advertised products with a supposedly discounted price, comparing it with the usual selling price so that consumers could see how much they were saving. The reality is that those prices without discount were fictitious. Akira inflated prices to make the buyer believe that the product was discounted and that it was a bargain. The lawsuit states that “In reality, the ‘sale’ price is the price at which Akira regularly sells the product, but the consumer has been tricked into thinking she found a great discount”.
Acussation
According to plaintiff Cruz, the company has committed several crimes. First, fraud, which is evident. Also negligent representation, since the statements have been totally false. It adds breach of contract, since according to the law of consumer law establishes that such practices are punishable, so the non-verbal way between trade and consumer broke. Of course, of unjust enrichment, since they have taken advantage of the consumer, increasing their level of profit at the expense of the same, generating damage. On top of that, it has violated the California’s Consumers Legal Remedies Act, violating the law of misleading advertising and unfair competition with other competitors.
Stephanie Cruz demands that the lawsuit be settled by a jury trial. She believes it is necessary to impose declaratory and injunctive relief. Also seeking actual damages for each person in the lawsuit, as well as statutory and punitive damages and restitution for herself and others affected. This lawsuit is in the Central District Court of California, and handled by attorneys Kyle McLean, Lisa R. Considine, David J. DiSabato and Leslie L. Pescia, of Siri & Glimstad LLP.
Other Class Action Lawsuits
Several companies are also facing this type of class action lawsuits. Brands such as Amazon, which also committed fraud by offering discounts and offers on televisions that had never actually been discounted. As consumers, we need to be aware of our rights and duties. We have to ensure that we fulfill both for successful buying and selling relationships with brands.
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