Saturday 31 July 2021 1:15 pm | Updated: Saturday 31 July 2021 4:33 pm

Boohoo chief summoned to US court to explain ‘fake’ sales promotions claim

The head of online fashion retailer Boohoo has been summoned to give evidence in a US court over allegations that the company promoted fake sales to attract customers.

Mahmud Kamani will give evidence to a Los Angeles court remotely on or before 15 August in a four-hour deposition.

Boohoo is accused of tricking customers into thinking they are saving money when purchasing garments. It is claimed the products were never listed at the full price the discount advertised.

The claim, filed as a class action lawsuit, is being led by shopper Farid Khan who alleges the discounts advertised by Boohoo were “grossly exaggerated”.

Yasin Almadani, the lawyer who is representing the class action suit, said: “We presented hard evidence that Mr Kamani is an architect and major driver of the fraudulent pricing schemes Boohoo Group is using to deceive its customers, and the court found the evidence compelling over Mr Kamani’s not-so-credible objection.”

“We intend to conduct a thorough cross-examination and ultimately hold Mr Kamani and his companies accountable for deceiving consumers with fake sales and false pricing schemes.”

In response to the US allegations, a spokesperson for Boohoo said: “We vehemently deny any allegation of fraudulent behaviour. At Boohoo, we pride ourselves on offering our customers exceptional products and value across all of our brands.”

“The low advertised prices that our customers pay are clearly disclosed and highly competitive to the prices offered by our competitors for similar styles.”

“Our customers appreciate the quality and value received, as reflected by their loyalty and the low return rate. Given the existence of ongoing proceedings in the US — which Boohoo intends to vigorously defend — it would be inappropriate to comment further.”