Fashion retailer Zara accused of unlawful pricing in U.S.

PASADENA, Calif. (KABC) -- Zara is a clothing company of choice of many celebrities, but the fashion retailer Monday got hit with a lawsuit for allegedly cheating American shoppers out of billions of dollars.

It is known for its trendy but reasonably-priced clothing for women and men. Even celebrities sport the label, including Kim Kardashian, Selena Gomez and The Dutchess of Cambridge Kate Middleton.

Not everyone's a fan, however. The international retailer was accused of unlawful pricing.

Attorney Mark Geragos represents the plaintiffs. He accused Zara of "bait and switch and cover-up pricing." He said many products are priced in euros and when converted at the register, consumers are overcharged.

"We estimate between $12 and $15 per item, and if you extrapolate that out, it could be upwards of $1 billion or more...," he said.

In other instances, stickers with a price in dollars covered up a cheaper price in euros.

Shoppers said the pricing has confused them. Now they're wondering if they overpaid and if they'll continue to shop at Zara.

"They have some products that are in euros and then when I go to the counter, it changes and it's a little confusing," said shopper Barcev Bilemjin. "Because when I go on my phone and I check the price for USD, it's a little different."

Geragos believes the pricing was systematic and that Zara knew what they were doing. His advice to shoppers: Check your tags before you buy.

Zara USA denied the allegations and issued a statement, which read in part: "We pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers. We look forward to presenting our full defense in due course through the legal process."