But what if that crossed-out price was never real to begin with?

That’s exactly what a new class action lawsuit filed in the Northern District of California alleges against Nordstrom Rack — and it’s a problem that touches millions of California shoppers every single day.

The Lawsuit: Cheng v. Nordstrom, Inc.

Our firm recently filed Cheng v. Nordstrom, Inc. on behalf of plaintiff Joanna Cheng, a San Mateo County resident who purchased a children’s nightgown from NordstromRack.com. The product was displayed with a selling price of $20.87 alongside a struck-through “Comparable Value” reference price of $42.00 — promising a 50% savings.

The problem? According to the complaint, that $42.00 reference price was never a real price for that product. Nordstrom Rack allegedly uses a practice of selecting a price from what it deems a “comparable” product sold by an entirely different brand and then presenting that number as the benchmark for savings calculations. The actual product — an AME-brand Disney character nightgown sold through mass-market retailers — was never offered for sale at anything close to $42.00 in the California market.

The lawsuit brings claims under California’s False Advertising Law (FAL), Unfair Competition Law (UCL), and Consumers Legal Remedies Act (CLRA), and seeks relief on behalf of all California consumers who purchased Nordstrom Rack products advertised with “Comparable Value” reference prices during the past four years.

The Law: California’s 90-Day Price Rule

Most consumers don’t know this, but California has one of the strongest reference pricing laws in the country. Cal. Bus. & Prof. Code § 17501 sets strict rules for when a retailer can advertise a “former price” or a “Comparable Value” comparison:

For a “former price” advertisement, the crossed-out price must have been the actual prevailing price at which the same item was sold in the ordinary course of business within the three months immediately preceding the advertisement. Not the price of a similar item. Not a manufacturer’s suggested retail price. The actual selling price of that exact product, sold in the regular course of business, within the last 90 days.

For a “Comparable Value” comparison, California law requires that the merchandise used for the comparison be of like grade and quality and have been actually offered for sale or sold at that reference price in the trade area. The comparison can’t be to an entirely different brand or SKU that Nordstrom Rack unilaterally decided was “comparable.”

In plain terms: if a store shows you a crossed-out price, that price has to be real. It has to be the price at which that same product actually sold recently — not a number pulled from a different product, a different brand, or thin air.

How to Spot a Fake Discount

Here are the red flags consumers should watch for when shopping — in stores or online:

1. The “Comparable Value” or “Compare At” label This is the biggest tell. When you see “Comparable Value: $X” or “Compare At: $X” next to a product, the retailer is not claiming that the product itself ever sold at that price. It’s comparing to some other product it deems similar. Under California law, that comparison still has to be grounded in real sales of merchandise of like grade and quality in your trade area — but retailers often ignore that requirement entirely.

2. The discount seems impossibly large When a product is perpetually 40%, 50%, or 60% off, ask yourself: has it ever actually sold at the “original” price? Off-price retailers like Nordstrom Rack, TJX, and Burlington receive merchandise specifically for their stores — meaning there may be no original retail price to compare against at all.

3. The fine print is microscopic or missing California law requires that price comparisons be truthful and non-misleading. When a retailer buries the basis for its comparison behind a tiny circled “i” icon or doesn’t disclose it at all, that’s a warning sign. A legitimate comparison should be transparent about what the reference price represents.

4. The “sale” never ends If a product has been “on sale” every time you’ve visited a website or store, the sale price is the real price. A promotional price that’s permanent isn’t a discount — it’s deceptive advertising.

5. The product is store-exclusive or off-brand If you can’t find the product at any other retailer, there’s no way to verify whether the reference price was ever a real market price. Be especially skeptical of reference prices on goods manufactured specifically for off-price retailers.

What You Can Do

If you’re a California consumer and you’ve purchased products from Nordstrom Rack’s website or stores based on “Comparable Value” reference prices, you may have rights under California law.

More broadly, if you’ve purchased any product — from any retailer — where the “original” or “compare at” price seemed inflated or unverifiable, here’s what to do:

• Screenshot everything. Capture the product listing, the reference price, and the date before it changes.

• Search for the product. See if it’s sold elsewhere. If it is, compare prices. If it isn’t, ask yourself how the retailer calculated its reference price.

• Check the fine print. Look for any disclosure about what the reference price represents. Vague language like “similar items” or “comparable merchandise” is a red flag.

• Keep your receipts. If you paid a price premium based on a false “discount,” you may be entitled to restitution.

Why This Matters

Reference price fraud isn’t a victimless corporate shortcut. When a retailer inflates a crossed-out price, it manipulates your perception of value and induces you to spend money you might not otherwise spend. California’s legislature understood this when it passed § 17501, and the courts have consistently recognized that misleading price comparisons cause real economic harm to real people.

Cheng v. Nordstrom, Inc. is one piece of a broader effort to hold retailers accountable when they use fake discounts to deceive California consumers. If you think you’ve been the victim of deceptive reference pricing, we’d encourage you to speak with a consumer protection attorney.

Javitch Law Office represents plaintiffs in consumer protection and civil rights matters. If you have questions about a potential claim, you can reach us at mark@javitchlawoffice.com or (650) 781-8000.

This blog post is for informational purposes only and does not constitute legal advice

How often do you receive a strange voicemail or unexpected text message trying to sell you something? For most people, it’s an every day occurrence. There’s a chance it may not just be annoying—it might actually be illegal. And that means you could be sitting on a potential case under the Telephone Consumer Protection Act (TCPA) without even realizing it.

What Is the TCPA?

The Telephone Consumer Protection Act is a federal law that protects consumers from unwanted and intrusive telemarketing. It prohibits certain types of automated communications, like:

• Pre-recorded ringless voicemails

• Auto-dialed calls or texts to your cell phone without consent

• Spammy text messages promoting products or services you never asked for

If a company breaks the rules, they can be on the hook for $500 to $1,500 per violation. That means you may be entitled to compensation—if you take action.

How to Check If You Have a Case Right Now

Here’s how to quickly scan your phone for a possible TCPA violation:

✅ Step 1: Check Your Voicemail and Text Messages

Look for messages that:

• Came from an unknown or unrecognized sender

• Promote a real product or service

• Sound like a pre-recorded pitch or automated message

• Include a company name, website, or some way to trace back to a business

⚠️ Important: Ignore Obvious Scams

If the message is clearly a phishing scam or a shady link trying to steal your personal info, delete it and move on. These are not the kind of messages you can typically bring a TCPA case for. You’re looking for real businesses violating the law, not offshore scams.

Examples of Potential TCPA Violations

• A text message saying “Get pre-approved for a car loan today!” from a number you don’t recognize

• A ringless voicemail offering a “limited-time offer” on solar panels or home insurance

• If these were sent without your permission, they could qualify as TCPA violations.

What to Do If You Find a Message Like This

1. Take a Screenshot or save the voicemail

2. Note the date, time, and number

3. Don’t delete it yet!

4. Even just one illegal call or message can be the start of a real legal claim.

Why Companies Keep Doing This

Many businesses still break the law because:

• They think no one will sue

• They buy shady marketing leads

• They don’t realize the TCPA applies to texts and voicemails

But the law is clear: If they’re contacting you without permission, you have rights.

You could be one call or text away from holding a company accountable and putting money back in your pocket.

If you're on the Federal Do Not Call (DNC) Registry, it's illegal for most telemarketers to call you, even if the person on the line is a live human being. That's right: even live telemarketing calls are usually illegal if your number is on the DNC list. And if the call uses an artificial or prerecorded voice, that’s another separate violation of federal law (specifically, the Telephone Consumer Protection Act, or TCPA).

The law allows consumers to sue for statutory damages of up to $500 per call—and up to $1,500 per call if the company willfully or knowingly broke the law. Other states have even higher penalties. If you live in Texas, the state’s law is even tougher: violators can owe you up to $8,000 per illegal call under the Texas Business and Commerce Code if they conduct telemarketing while failing to register for a telemarketing license.

Of course, it's not always easy. To successfully bring a case, you need to document everything:

• Write down the date and time of the call

• Note the phone number that called you

• Record what they were selling or promoting

• Try to identify the company or companies involved—listen carefully and ask questions

• Save voicemails and consider recording calls if it’s legal in your state

It takes diligence, but holding illegal telemarketers accountable is worth it—not only for the damages you can recover, but to help shut down bad actors targeting consumers nationwide.

Everyday Plaintiff is about educating people about their legal rights and showing them how everyday laws can be used to protect their privacy and pocketbook. If you’ve been harassed by unwanted telemarketing calls, it’s time to fight back.

This post is for education purposes only and does not constitute legal advice.

The challenge? Most people don’t know what these laws say. Fewer still know how to recognize when their rights have been violated. That’s where EverydayPlaintiff.com comes in.

Our mission is to help you understand the law—not just the headlines, but the consumer protection statutes at the federal and state level that give you real power. Once you know what’s legal and what’s not, you can start to see patterns: the robocalls you keep getting, the hidden fees on your bill, the misleading claims on that ad—all of these might be violations. And if they are, you might be entitled to compensation.

But more than money is at stake. These laws only work when people like you speak up. Most government agencies don’t have the staff or resources to monitor every company. That’s why the legal system depends on “private enforcement”—on everyday people coming forward, documenting violations, and sometimes filing complaints or lawsuits. Not every case needs to go to court, but many do. And each time a consumer stands up, it helps create a ripple effect: bad actors are held accountable, and the marketplace becomes just a little bit fairer.

Being an everyday plaintiff doesn’t mean being a lawyer or expert. It means being informed. It means noticing when something feels off. And it means being willing to say: “That’s not right—and I’m going to do something about it.”

This is important work. It takes courage. And it starts with knowledge.

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