The luxury brand, Michael Kors, who lost the reputation of “the best single product” because of its rapid expansion, was able to pull out in the United States when consumers were prosecuted for price tag fraud and compensation of $4 million 880 thousand.
It is understood that two consumers in a court in New York have sued Michael Kors to use “manufacturer’s recommended retail price” and “our price” at the price of the product two, and cause “our price” a relatively cheap atmosphere to induce consumers to buy. But in fact, the “manufacturer’s suggested retail price” product is specially used for products in outlets, which has never really sold products. Consumers believe that the brand is fooling the customer. A few days ago, the two sides reached a settlement, and Michael Kors agreed to cancel the “manufacturer’s recommended retail price” and replace it with “Value” and pay 4 million 880 thousand dollars for compensation.
This is another crisis of confidence after Michael Kors’s lower than expected profit in the fiscal year. The former has led to a 19% jump in the company’s share price. In the North American market where the lawsuit took place, sales revenue in the fourth quarter of last fiscal year fell by 7% compared with the same period last year.