Boohoo accused of promoting ‘fake sales’

The chief executive of Boohoo has been summoned to a US court over allegations the online fashion retailer promoted fake sales.

According to a report from City A.M. Mahmud Kamani is set to give evidence later on this month in a four-hour deposition.

The court is claiming that the company lied about the original price of items when advertising its sales, to make it seem like customers were saving money when buying items.

“We vehemently deny any allegation of fraudulent behaviour,” said a spokesperson for Boohoo. “At Boohoo, we pride ourselves on offering our customers exceptional products and value across all of our brands.”

They added: “The low advertised prices that our customers pay are clearly disclosed and highly competitive to the prices offered by our competitors for similar styles.”

Yasin Almadani, the lawyer representing the class action, told the business newspaper that it has presented hard evidence that Kamani is “an architect and major driver of the fraudulent pricing schemes Boohoo Group is using to deceive its customers.”

“We intend to conduct a thorough cross-examination and ultimately hold Mr Kamani and his companies accountable for deceiving consumers with fake sales and false pricing schemes,” added Almadani.

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