Case Overview: A class action lawsuit alleges Hanna Andersson runs a deceptive "never-ending sale" scheme, advertising false reference prices to mislead consumers into believing they are receiving limited-time discounts.

Consumers Affected: U.S. consumers who purchased Hanna Andersson products advertised at a discounted price from the company's website

Court: Not specified in available reporting

Hanna Andersson Accused of Running Fake "Never-Ending Sale" to Deceive Shoppers

A new class action lawsuit alleges that children's clothing retailer Hanna Andersson routinely deceives consumers by advertising perpetual discounts against inflated reference prices — creating the illusion of a limited-time bargain that, according to the lawsuit, never actually exists.

According to recent reporting from Top Class Actions, the complaint claims Hanna Andersson's website prominently displays strikethrough "original" prices alongside lower "sale" prices — a pricing practice the lawsuit argues is fundamentally misleading because those products are rarely, if ever, sold at the higher reference price.

Lawsuit Claims Discounts Are an Illusion

The lawsuit alleges that Hanna Andersson employs a deceptive pricing strategy in which items are marketed as being on sale for an extended — or indefinite — period of time. According to the complaint, the "original" prices shown alongside the discounted figures do not reflect prices at which the products were genuinely offered to consumers in good faith.

The plaintiffs claim this practice constitutes false advertising, arguing that consumers are led to believe they are securing a deal that is, in reality, the product's standard selling price. The lawsuit alleges that Hanna Andersson uses this scheme to manufacture a false sense of urgency and value, influencing purchasing decisions that consumers might not otherwise make.

Products and Pricing at Issue

The lawsuit targets pricing displayed across Hanna Andersson's online storefront, where the company sells children's and adult apparel, pajamas, and accessories — products that typically carry premium price points and are often marketed to value-conscious parents.

The complaint alleges that the inflated reference prices are not legitimate former prices but are instead artificial benchmarks set specifically to make the discounted prices appear more attractive. Had consumers known the true nature of the pricing, the lawsuit claims, they would not have purchased the products — or would have paid significantly less for them.

Why Fake Discount Claims Matter to Consumers

Deceptive reference pricing has been the subject of increasing legal and regulatory scrutiny across the retail industry. When a retailer advertises a product as "was $80, now $40," consumers reasonably understand that $80 to be a price the item was actually sold at. The lawsuit alleges that Hanna Andersson's pricing does not meet that standard.

The financial harm alleged is straightforward: consumers paid a price they believed to be discounted from a legitimate higher value. The complaint argues that the perceived savings were a fabrication — meaning shoppers effectively overpaid relative to what they understood themselves to be getting.

This type of litigation, sometimes referred to as "false reference pricing" or "phantom markdown" litigation, has resulted in significant settlements against other retailers in recent years, though no outcome has been determined in this case.

Hanna Andersson's Response

No public statement from Hanna Andersson regarding the lawsuit was available at the time of publication. The company has not been found liable, and the allegations in the complaint remain unproven.

A Growing Pattern Across Retail

Hanna Andersson is not the first retailer to face this type of claim. Major brands — including clothing chains, department stores, and e-commerce platforms — have faced similar lawsuits and regulatory actions over alleged fake markdown pricing in recent years. Several state attorneys general, including those in California and New York, have pursued enforcement actions related to deceptive pricing practices in the retail sector.

The Federal Trade Commission's guidelines on advertising and pricing caution that a reference price should reflect an actual, bona fide price at which a product was offered to the public before a discount is claimed.

Related Cases

• Target Faces Class Action Over Alleged Deceptive Pricing Practices
• J.Crew Accused of Running Perpetual Sale Scheme
• FTC Guidelines on Fake Discounts and What They Mean for Consumers

Lawsuit: To be updated upon confirmation of case caption

Case Number: Not yet available

Court: Not specified in available reporting

Plaintiffs' Attorney(s): Not specified in available reporting

Have you shopped at Hanna Andersson and noticed prices that seemed to always be "on sale"? Share your experience in the comments below.