TJ Maxx sued over 'Compare at' prices

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Thursday, July 23, 2015
VIDEO: TJ Maxx lawsuit
Department store TJ Maxx is accused of misleading customers about its discount deals.

Department store TJ Maxx is facing a new lawsuit after being accused of misleading customers about its discount deals.

The discount retailer is under fire after two individuals filed a proposed class action lawsuit regarding the store's "Compare At" prices.

The "Compare At" prices are on price tags that are posted in the store, and allegedly are the retail price of an item.

The lawsuit claims TJ Maxx jacks up those prices to make customers think they're saving more.

In a statement to ABC News, TJ Maxx says: "We tell our customers what we mean by 'Compare At; prices. Transparency is important to us and integrity is ingrained in our culture. Beyond that, we do not comment on pending litigation."

"What this case is arguing is that they should just be more clear," Yahoo Finance correspondent Lauren Lyster said. "That the average consumer may not see those signs and in fact will be looking at this price tag and not really understanding what that price that is compared at actually means."

And that means doing your own price comparison may lead to the best choice.