New class action lawsuit alleges Nike advertised fake discounts

On July 21, 2026, Corinne Pearson filed a class action lawsuit against Nike Inc. in the U.S. District Court for the Southern District of California.

The lawsuit alleges Nike advertised discounts on its website and mobile app with reference prices the company had not charged in months.

Pearson's purchase

Pearson says she shopped for shoes on the Nike app on April 26, 2025. She claims the app listed Black Nike Killshot 2 leather shoes for $54.97 beside a crossed-out reference price of $100. Nike's website showed the same shoes with a $90 reference price marketed as "38% off," the lawsuit alleges.

Pearson claims that because she thought she was saving at least $45 off the regular price, she bought the shoes. She claims Nike advertised the sale price since at least Jan. 19, 2025, meaning Nike had not sold them at either reference price within the three months California law requires before a retailer can advertise a former price.

The pricing data behind the allegations

Nike keeps products on sale well past the legal window, making the reference prices stale and the advertised savings fictitious, the proposed class action claims.

For example, the Nike Air Max 2017 had a $190 reference price between Sept. 8, 2025, and March 14, 2026, but never sold above $171.97 across for at least that six-month stretch, the lawsuit alleges. Pearson's attorneys say they tracked Nike listings using screenshots and the Internet Archive's Wayback Machine.

The legal claims

The class action lawsuit brings four claims against Nike:

  • California's Unfair Competition Law, which prohibits unlawful, unfair or fraudulent business practices
  • California's False Advertising Law, which bans untrue or misleading advertising, including false former prices
  • The Consumer Legal Remedies Act, which is a state law barring false statements about the reasons for or amounts of price reductions
  • Unjust enrichment, which is a claim that Nike should not keep money it collected through the alleged scheme

What the lawsuit means for Nike shoppers

The proposed class covers everyone in California who bought a Nike product through the website or the app at a discount from a higher advertised reference price on or after July 21, 2022. It seeks more than $5 million, including restitution, disgorgement of profits, penalties, an order stopping the practice and attorney fees.

Pearson's attorneys claim they sent Nike a demand letter under the Consumer Legal Remedies Act on the day of filing, opening a 30-day window for the company to correct the pricing. If Nike does not, they may amend the suit to seek actual, punitive and statutory damages.

The lawsuit is pending, and there is currently no settlement and no claims process.