J.C. Penney will pay $50 million to settle a class action lawsuit in California that accused the department store of tricking consumers into thinking they were getting big discounts when they weren’t.
The suit alleged that Penney inflated “original” prices on sale items to make discounts appear larger than they actually were. The retailer denies any wrongdoing, but says it will change how it advertises and prices what it sells. The case is a reminder of how the perception of savings can sometimes mean more than the price of the item itself.
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