Shawnna Montes v. Sparc Group, LLC

136 F.4th 1168
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 9, 2025
Docket23-35496
StatusPublished
Cited by1 cases

This text of 136 F.4th 1168 (Shawnna Montes v. Sparc Group, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shawnna Montes v. Sparc Group, LLC, 136 F.4th 1168 (9th Cir. 2025).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

SHAWNNA MONTES, on behalf of No. 23-35496 herself and all others similarly situated, D.C. No. 2:22-cv-00201- Plaintiff-Appellant, TOR

v. ORDER CERTIFYING SPARC GROUP, LLC, QUESTION TO THE Defendant-Appellee. WASHINGTON SUPREME COURT

Filed May 9, 2025

Before: Sidney R. Thomas, Kim McLane Wardlaw, and Daniel P. Collins, Circuit Judges.

Order; Concurrence by Judge Collins 2 MONTES V. SPARC GROUP, LLC

SUMMARY*

Washington’s Consumer Protection Act

In an action involving the scope of injury protected by Washington’s Consumer Protection Act, the panel certified the following question to the Washington Supreme Court:

When a seller advertises a product’s price, coupled with a misrepresentation about the product’s discounted price, comparative price, or price history, does a consumer who purchases the product because of the misrepresentation suffer an “injur[y] in his or her business or property” under Wash. Rev. Code §§ 19.86.020 and 19.86.090 if the consumer pays the advertised price?

Pertinent to this certification order, plaintiff Shawnna Montes filed a putative class action alleging that Aéropostale, a clothing brand operated by Defendant SPARC Group, LLC, violated the CPA by representing to consumers that clothing items for sale were at deeply discounted prices when in fact they had not been discounted at all, i.e., a “false discounting scheme.” Montes alleged three theories of injury. First under the “purchase price theory,” she alleged she was injured because but for the deceptive discount advertising she would not have purchased the leggings at the price that she paid.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. MONTES V. SPARC GROUP, LLC 3

Second, under the “benefit of the bargain theory,” she alleged that she was injured because she did not receive the discount that she thought she was getting. Finally, under the “price premium theory,” she argues that the false discounting scheme raised the cost of Aéropostale’s clothes for all consumers, and therefore she purchased the leggings at an inflated price. The panel identified that the basis of the certification order was whether Washington law protects consumers from false discounting schemes, and if it does, whether Montes has adequately alleged an injury under Washington’s CPA by alleging that she would not have paid the price that she did for a pair of leggings but for misrepresentations about the leggings’ discount and price history. Concurring in the result, Judge Collins agreed with the decision to certify to the Washington Supreme Court the question set forth in the majority’s order. However, he did not join the majority’s reasoning to the extent that it suggested that plaintiff’s “purchase price theory” relied on the premise that the available purchase price changed due to the alleged misrepresentation and would have been lower in the absence of it. As set forth in her opening brief, plaintiff’s “purchase price theory” focused on misrepresentations that induce customers to make purchases that they otherwise would not have made—with the injury being the money spent on those purchases. Thus, the asserted injury and measure of damages was the full purchase price, with no reduction for the value received. Judge Collins also wrote that the majority provided an irrelevant summary of cherry- picked decisions addressing California and Oregon law, as well as non-precedential decisions from federal district courts in Washington that were not binding either on this court or on the Washington Supreme Court. 4 MONTES V. SPARC GROUP, LLC

COUNSEL

Che Corrington (argued), Paul K. Lukacs, and Daniel M. Hattis, Hattis & Lukacs, Bellevue, Washington; Stephen P. DeNittis, DeNittis Osefchen PC, Marlton, New Jersey; for Plaintiff-Appellant. Michael D. Meuti (argued), Meegan B. Brooks, and Stephanie A. Sheridan, Benesch Friedlander Coplan & Aronoff LLP, San Francisco, California; David R. Ebel and Molly J. Henry, Schwabe Williamson & Wyatt PC, Seattle, Washington; for Defendant-Appellee.

ORDER

We respectfully ask the Washington Supreme Court to answer the certified question presented below, pursuant to Wash. Rev. Code § 2.60.020, because “it is necessary to ascertain the local law of [Washington] state in order to dispose of [this] proceeding and the local law has not been clearly determined.” This case involves the scope of injury protected by Washington’s Consumer Protection Act (“CPA”). Pertinent to this certification order, Plaintiff Shawnna Montes alleges that Aéropostale, a clothing brand operated by Defendant SPARC Group, LLC, violated the CPA by representing to consumers that clothing items for sale were at deeply discounted prices when in fact they had not been discounted at all, i.e., a “false discounting scheme.” The sole issue is whether Montes has alleged an injury under the MONTES V. SPARC GROUP, LLC 5

CPA.1 We determine that this issue is dispositive and has not been settled by Washington case law. Thus, we respectfully certify the following question to the Washington Supreme Court:

When a seller advertises a product’s price, coupled with a misrepresentation about the product’s discounted price, comparative price, or price history, does a consumer who purchases the product because of the misrepresentation suffer an “injur[y] in his or her business or property” under Wash. Rev. Code §§ 19.86.020 and 19.86.090 if the consumer pays the advertised price?2

I. We summarize the material allegations from Montes’s complaint, which we take as true for purposes of this appeal. See Wadsworth v. Talmage, 911 F.3d 994, 995 (9th Cir.

1 At the district court, Defendant SPARC Group conceded that the deceptive acts and causation elements of the CPA were met, therefore injury is the only disputed issue. 2 Montes alleges three theories of injury. First, she alleges that she was injured because but for the deceptive discount advertising she would not have purchased the leggings at the price that she paid, the “purchase price theory.” Second, she alleges that she was injured because she did not receive the discount that she thought she was getting, the “benefit of the bargain” theory. Finally, Montes argues that the false discounting scheme raised the cost of Aéropostale’s clothes for all consumers, and therefore she purchased the leggings at an inflated price, the “price premium theory.” We set forth all of Montes’s theories of injury so that the Washington Supreme Court may discuss the viability of these theories under Washington law in the false discounting context to the extent it sees fit. 6 MONTES V. SPARC GROUP, LLC

2018). Montes filed a putative class action against Defendant SPARC Group, LLC d/b/a Aéropostale (“SPARC”) on behalf of herself and Washington consumers who purchased falsely discounted clothing from Aéropostale. According to Montes, Aéropostale perpetrated the false discounting scheme across its website and in its brick-and-mortar stores in violation of the CPA. Aéropostale is a popular clothing retailer that primarily targets the teen and young adult market. Aéropostale advertised “sales” with large discounts—typically 50% to 70% off—and “Buy 1 Get 1 Free” or “Buy 1 Get 2 Free” offers. Discount offers were often advertised by showing the “regular price” slashed through for a lower sales price. The discount percentage would be calculated from the listed regular price. Unbeknownst to consumers, Aéropostale’s products were never or virtually never offered at the so- called regular price, according to the complaint.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Zastrow v. RugUSA LLC
W.D. Washington, 2025

Cite This Page — Counsel Stack

Bluebook (online)
136 F.4th 1168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shawnna-montes-v-sparc-group-llc-ca9-2025.