Two California consumers are suing T.J. Maxx for using deceptive price comparisons on their price tags. [See lawsuit.]
T.J. Maxx price tags looks like this:
It shows a higher “compare at” price and the lower T.J. Maxx selling price. Average consumers, like the plaintiffs, might believe they were saving that amount of money on the items they were buying because the same item or a similar item was selling elsewhere for the stated higher price.
As it turns out, T.J. Maxx defines “compare at” on their website (and they say on signs in their stores) in a bit of an unexpected way:
*MOUSE PRINT:
What do we mean by “compare at”?
The “compare at” price is our buying staff’s estimate of the regular, retail price at which a comparable item in finer catalogs, specialty or department stores may have been sold. We buy products from thousands of vendors worldwide, so the item may not be offered by other retailers at the “compare at” price at any particular time or location. We encourage you to do your own comparison shopping as another way to see what great value we offer.
T.J. Maxx seems to be saying that its “compare at” prices are merely estimates and not actual prices that it has found for comparable merchandise in the marketplace.
This does not square with state or federal guidelines that seem to require substantiation that a reasonable number of sellers are actually offering a comparable in quality item at the stated “compare at” price.
In T.J. Maxx’s defense, the actual selling price for their merchandise tends to be as low or lower than some of the best prices being offered elsewhere for the same item. And, in many of the cases that we checked, the compare at price that T.J. Maxx uses is conservative and sometimes less than the manufacturer’s suggested retail price.
For example:
In this case, Nautica claims the list price of the 20-inch (not 21-inch as T.J. Maxx asserts) suitcase is $320. T.J. Maxx says the “compare to” price is $140, and they are is selling it for $69.99. Who knows what other brand is comparable to this particular item, but this very item sells for no more $99.99 at other stores.
So real life savings are $30 rather than $70 (at least for an identical item).
None of this excuses the company, however, for using estimates instead of basing its “compare to” prices on actual products and their real prices in the marketplace.
As in most instances of this sort, regardless of the “Compare At” price, if you feel you are getting a good deal with the TJ Maxx price, then buy it. I’ve found that the compare price is usually double the TJ price. I just sort of ignore it.
In my experience, your first price tag is unusual in that the TJM price is not half of the compare price (compare at $20, pay $12.99). The suitcase is more typical of the TJM pricing where the TJM price is half the compare price.
TJ Maxx generally has lower prices than other stores so you won’t see me complaining here.
Though, If the labels contain false information then TJ Maxx should be held accountable for it and reprimanded. Part of the issue may be fluctuating prices as retail items are shipped around.
Well Wayne unless you have a smartphone handy to compare prices you may not even know if it is a deal or not. Some local news have looked into prices a T.J. Maxx and it is mix bagged at best on weather T.J. Maxx does have the lowest price.
Compare at to me needs to be the SAME product imo, but I do not think that always occurs.
I know that when I look at merchandise in Macy’s or Kohl’s store, the prices make my wallet hurt. JC Penny and Sears are mid-tier prices and I can usually find decent sales.
TJ Maxx, Marshalls and similar stores, however, usually have a cheaper selection of comparable merchandise. The stores aren’t organized so well, but if you only care about lower prices then TJ Maxx should be the place to go.
In my experience, the “Compare at” prices at TJ Maxx have been very conservative. Most of the stuff I’ve bought there I’ve researched online and found at department stores for at least twice what they estimated for the “compare at” price. So I have no issue with them whatsoever. Keeping track of all comparable prices and updating their tickets to reflect that would be too much to expect in my opinion.