Shaulis v. Nordstrom, Inc.

Judith Shaulis (plaintiff) purchased a sweater from Nordstrom Rack, an outlet store operated by Nordstrom, Inc. (defendant). The price tag on the sweater stated the price of $49.97 and gave a comparable price of $218, suggesting that the sweater was being sold at a discounted price. After purchasing the sweater, Shaulis believed that no store had ever sold the sweater for $218 and that she had been misled about the sweater’s quality by the comparable price listed on the price tag. Shaulis filed a lawsuit against Nordstrom in federal court, alleging that Nordstrom violated the Massachusetts Consumer Protection Act—the state’s unfair and deceptive acts or practices statute—by including deceptive comparable prices on price tags and misleading consumers about the quality of items for sale at Nordstrom Rack locations. Shaulis argued that had she known about Nordstrom’s allegedly deceptive pricing practices, she would not have purchased the sweater. However, Shaulis did not claim that the sweater was not worth $49.97. Nordstrom moved to dismiss Shaulis’s claims, arguing that Shaulis had not suffered a legally cognizable injury. The district court held that Nordstrom’s pricing practices were unfair or deceptive acts that violated the Massachusetts Consumer Protection Act. However, the court also found that Shaulis did not receive a legally cognizable injury under the Massachusetts Consumer Protection Act because she did not suffer harm that was separate from the violation. The court granted Nordstrom’s motion and dismissed the case. Shaulis appealed.