Gilt Groupe Accused of Phony Markdowns

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Photo: giltgroupe.com

Rapidly expanding sample-sale site Gilt Groupe has been accused of lying about the deals they offer on designer clothes. As you can see, Gilt Groupe said the scarf pictured here retailed for $300, and offered nearly 60 percent off with the new price of $128. However, one blogger found the same scarf at Neiman Marcus for a retail price of $195. Racked suggests Gilt got the $300 figure from Sofia Cashmere, but even so, $105 is a huge difference. Perhaps shoppers should approach Gilt like T.J. Maxx. Of course savvy shoppers question the original price, age, and everything else about products in that store, right down to the chocolate-covered peppermint patties at the cash wrap. But on Gilt Groupe, there are no cheap plastic hangers and glass cases full of fragrances of questionable origin to make customers think twice.

RackedWire: The Gilt Backlash Begins; Journelle Offers Facebook Discounts [Racked]