Nike and Lululemon Face Lawsuits Over Deceptive Pricing

August 6, 2026

Nike and Lululemon have both recently been hit with lawsuits alleging deceptive pricing strategies in which discounted products are listed at fake, inflated original prices. Both lawsuits were filed by the same law firm, Pacific Trial Attorneys, and sought class-action status. 

In a lawsuit filed in Los Angeles federal court on July 21, California resident Corinne Pearson accused Nike of using deceptive “phantom” discounts on its website and mobile app. The lawsuit claims Nike displays false, inflated “reference prices” alongside sale prices to trick customers into believing they are saving money when the items are sold at their regular price 

In the Nike lawsuit, Pearson charges that a Nike Air Max 2017 with a list price of $190 was continuously marked down from early September 2025 through the middle of March 2026 and was eventually acquired by Pearson at a 39 percent discount. The proposed class covers every California buyer of discounted Nike DTC merchandise going back to July 2022. SGB Media