New class action claims Old Navy's "sale" prices really just its everyday prices

Fantasia King Bell of Stockton, California, filed a class action lawsuit against The Gap Inc. on April 8, 2026, in San Francisco County Superior Court. The complaint alleges Old Navy systematically inflates reference prices on nearly all of its merchandise to create the illusion of steep discounts when shoppers really pay the standard everyday price.

The complaint claims the company settled two nearly identical lawsuits in recent years, paying more than $140 million in 2019 and up to $340 million in 2022, yet kept the same pricing practices in place after both.

How the alleged pricing scheme works

Old Navy labels most merchandise with a higher reference price alongside a lower sale price, the lawsuit claims. Before filing the suit, the plaintiff's counsel reportedly tracked randomly selected items on the Old Navy website using Microsoft's price-tracking software and found the company never sold any of the tracked items at their advertised reference prices.

The complaint details four examples:

  • "Straight Five-Pocket Pants" listed a $44.99 reference price but never exceeded $30.99 between April 26, 2025, and Dec. 4, 2025
  • "Extra High-Waisted CloudComfy 7/8 Leggings" listed a $29.99 reference price but never exceeded $20.99 between April 24, 2025, and Dec. 4, 2025
  • "Extra High-Waisted Polished Pixie Skinny Ankle Jeans" listed a $54.99 reference price but never exceeded $22 between May 14, 2025, and Dec. 4, 2025
  • "High-Waisted SoComfy Jogger Sweatpants" listed a $36.99 reference price but never exceeded $22 between Aug. 18, 2025, and Dec. 4, 2025

Bell's purchase and Wayback Machine evidence

Bell claims she paid $41.99 for a pair of "Slim Built-In Flex Ripped Jeans" advertised as 30% off a $59.99 reference price on Sept. 28, 2023 at the Old Navy store in Stockton's Weberstown Mall.

A screenshot from the Wayback Machine taken on March 24, 2024, showed the identical item still listed at $41.99 and 30% off nearly six months later. The lawsuit alleges this demonstrates the "sale" price functioned as Old Navy's ordinary selling price throughout.

Close to half a billion dollars in prior settlements

Attorneys highlight two previous lawsuits alleging the same conduct. Andrews v. The Gap Inc. settled in 2019 for more than $140 million, while Barba v. Old Navy LLC settled in 2022 for up to $340 million. Together, those settlements total close to half a billion dollars yet the complaint alleges the practice continued without meaningful change, claiming Gap treated settlement costs as a routine expense rather than a reason to change course.

The legal claims

The class action lawsuit brings three causes of action under California law:

  • California Unfair Competition Law, alleging Old Navy's pricing constitutes unfair, fraudulent and unlawful business conduct
  • California False Advertising Law, which requires businesses to base any “former price” used for a discount on a price they actually charged within the past 90 days
  • California Consumers Legal Remedies Act, claiming false statements about price reductions and unconscionable dispute resolution provisions in Old Navy's terms of use

What this means for Old Navy shoppers in California

The proposed class covers California citizens who purchased merchandise from Old Navy stores in California or from the Old Navy website during the applicable statute of limitations period and did not receive a refund or credit. Bell seeks restitution, a public injunction forcing Old Navy to stop the alleged pricing practice and removal of the challenged dispute resolution terms.

There is no settlement, no claims process and no money available at this time. The lawsuit remains pending in San Francisco County Superior Court. Gap has not filed a formal response.