Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 1 of 47
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`EDGE, A PROFESSIONAL LAW CORPORATION
`Daniel A. Rozenblatt (SBN 336058)
`daniel@edge.law
`Seth W. Wiener (SBN 203747)
`seth@edge.law
`1341 La Playa Street 20
`San Francisco, CA 94122
`Telephone: (415) 515-4809
`
`CAPSTONE LAW APC
`Tarek H. Zohdy (SBN 247775)
`tarek.zohdy@capstonelawyers.com
`Cody R. Padgett (SBN 275553)
`cody.padgett@capstonelawyers.com
`1875 Century Park East, Suite 1000
`Los Angeles, California 90067
`Telephone: (310) 556-4811
`Facsimile: (310) 943-0396
`
`Attorneys for Plaintiffs
`ANDREW AXELROD and ELIOT BURK
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`ANDREW AXELROD and ELIOT BURK,
`individually and on behalf of all others
`similarly situated,
`
`
`Plaintiffs,
`
`
`LENOVO (UNITED STATES) INC., a
`Delaware corporation,
`
`
`vs.
`
`Defendant.
`
`
`
` Case No.
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`CLASS ACTION COMPLAINT
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`DEMAND FOR JURY TRIAL
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`CLASS ACTION COMPLAINT
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 2 of 47
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`Plaintiffs Andrew Axelrod and Eliot Burk (“Plaintiffs”), individually and on behalf of all
`others similarly situated, bring this action against Defendant Lenovo (United States) Inc.
`(“Lenovo”). Upon personal knowledge as to their own acts and status and upon information and
`belief as to all other matters, Plaintiffs allege the following:
`INTRODUCTION
`1.
`This is a class action against Lenovo for false advertising on its website,
`lenovo.com. Lenovo is the largest computer manufacturer in the world. To sell more products and
`maximize its profits, Lenovo displays false regular prices on its website and advertises false
`discounts based on those prices. The regular prices are false because they do not represent the price
`at which Lenovo actually sells its products. The discounts are false because they do not represent
`the actual savings obtained by customers. This unlawful marketing practice, commonly known as
`false reference pricing, artificially increases demand for Lenovo’s products and induces customers
`to pay more for Lenovo-branded products based on a false impression of their value. Lenovo’s use
`of false regular prices and false discounts is pervasive throughout its website.
`2.
`California law and federal regulations specifically prohibit this type of false advertising.
`For example, California’s consumer protection statute prohibits “[m]aking false or misleading
`statements of fact concerning reasons for, existence of, or amounts of, price reductions.” Civ. Code
`§ 1770(a)(13). California’s false advertising law prohibits advertising a former price unless it was
`the prevailing market price during the previous three months. Bus. & Prof. Code § 17501. As
`explained in the Federal Trade Commission’s (FTC) Guide Against Deceptive Pricing,
`[When] the former price being advertised is not bona fide but fictitious—for example,
`where an artificial, inflated price was established for the purpose of enabling the
`subsequent offer of a large reduction—the “bargain” being advertised is a false one;
`the purchaser is not receiving the unusual value he expects.
`
`16 C.F.R. § 233.1.
`3.
`Lenovo willfully violates these laws. For example, in September 2019, Plaintiff
`Eliot Burk purchased a ThinkPad P52 Mobile Workstation laptop on Lenovo’s website. Lenovo
`advertised the laptop for $1,189 and represented to Burk that he would save $1,170 off the regular
`price of $2,359 with the coupon code WSCLEARANCE—an abbreviation for Workstation Clearance.
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 3 of 47
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`4.
`However, $2,359 was not the regular price of the laptop. In fact, discovery will
`show that Lenovo never sold Burk’s laptop for anywhere near $2,359. For example, in August
`2019, one month before Burk’s purchase, Lenovo sold the laptop for $1,229. In July 2019, two
`months before Burk’s purchase, Lenovo sold the laptop for $1,169.
`5.
`Curiously, over the same time period, Lenovo increased the regular price of the
`laptop from $1,559 in July, to $2,049 in August, to $2,359 in September. As depicted in the
`screenshots below, with each increase to the regular price, Lenovo advertised that customers were
`saving even more money.
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`July 9, 2019
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`August 10, 2019
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`September 1, 2019
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`6.
`According to Lenovo, a customer who purchased Burk’s laptop in July 2019 for
`$1,169 saved $390, while a customer who purchased the same laptop in September 2019 for $1,189
`saved $1,170.
`7.
`Lenovo’s artificial increases to the regular price demonstrate the fraudulent nature of
`its pricing scheme. Rather than advertise the true regular price of its products—i.e., the price at
`which Lenovo formerly sold the products—Lenovo inflates the regular price to make customers
`believe they are getting an incredible deal—here, $1,170 off the regular price.
`8.
`Indeed, to justify the Workstation Clearance sale that was advertised to Burk, it
`appears Lenovo first increased the regular price of the laptop, and then advertised it as 50% off, as
`depicted in the email marketing newsletter below, which was sent by Lenovo on September 2,
`2019, three days before Burk’s purchase.
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 4 of 47
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`9.
`The “Big Summer Workstation Blowout” advertised in Lenovo’s newsletter was
`hardly a “blowout sale,” as reasonable consumers understand that term.1 The sale price of Burk’s
`laptop in September was only forty dollars less than the price in August, and twenty dollars more
`than the price in July.
`10.
`In addition to harming consumers, Lenovo’s deceptive pricing scheme also harms
`competition by giving Lenovo an unfair advantage over other computer manufacturers that do not
`engage in this type of false advertising. After all, a customer is more likely to purchase a $2,000
`laptop advertised at 50% off its regular price than pay full price for a $1,000 laptop.
`11.
`Lenovo advertises false regular prices and false discounts for hundreds of products
`on its website every day. The pervasive, ongoing nature of its pricing scheme demonstrates that
`false reference pricing is central to its overall marketing strategy. In bringing this lawsuit, Plaintiffs
`intend curb this and other unlawful and deceptive marketing practices used on Lenovo’s website,
`and seek compensation for themselves and all others similarly situated who have been duped by
`Lenovo’s false advertising.
`
`THE PARTIES
`12.
`Plaintiff Andrew Axelrod (“Axelrod”) is a California citizen. On January 1, 2021,
`Axelrod accessed Lenovo’s website from his residence in San Francisco, California, and purchased
`a laptop from Lenovo.
`13.
`Plaintiff Eliot Burk (“Burk”) is a California citizen. On September 5, 2019, Burk
`accessed Lenovo’s website from his workplace in California and purchased a laptop from Lenovo.
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`1 See https://en.wiktionary.org/wiki/blowout_sale (defining blowout sale to be “a sale that is
`advertised as having bigger than usual discounts, clearance”) (last visited Aug. 15, 2021).
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 5 of 47
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`14.
`Defendant Lenovo (United States) Inc. (“Lenovo”) is a Delaware corporation, with
`its principal place of business at 8001 Development Dr. Morrisville, North Carolina, 27560.
`Lenovo manufactures and sells computers and related peripheral parts, software, and services to
`customers in California through its website, lenovo.com.
`JURISDICTION AND VENUE
`15.
`This Court has subject matter jurisdiction pursuant to the Class Action Fairness Act
`of 2005, 28 U.S.C. § 1332(d)(2), because the aggregate claims of the members of the proposed
`Classes exceed $5 million (exclusive of interest and costs), the proposed Classes consist of 100 or
`more members, and at least one member of the proposed Classes is a citizen of a different state than
`Lenovo.
`16.
`California has personal jurisdiction over Lenovo because Lenovo is registered with
`the California Secretary of State and authorized to do business in California; maintains offices and
`is licensed to do business and does business in California; and has sufficient minimum contacts
`with California, having intentionally availed itself of the California market through the promotion,
`marketing, and sale of products in California so as to render the exercise of jurisdiction by this
`Court permissible under traditional notions of fair play and substantial justice.
`17.
`Venue is proper in the Northern District of California pursuant to 28 U.S.C. § 1391
`(b)(2) because a substantial part of the events or omissions which give rise to Plaintiffs’ claims
`occurred in San Francisco, California.
`INTRADISTRICT ASSIGNMENT
`18.
`Pursuant to the Northern District of California’s Local Rule No. 3-2(d), assignment
`of this matter to the San Francisco Division or Oakland Division is appropriate because this action
`arises in San Francisco County, in that a substantial part of the events or omissions which give rise
`to the claims asserted herein occurred in San Francisco County.
`FACTUAL ALLEGATIONS
`19.
`Lenovo is the U.S. subsidiary of Lenovo Group Limited (“Lenovo Group”), a
`Chinese multinational technology company. Lenovo Group is a $60 billion Fortune Global 500
`company and the largest computer manufacturer in the world. In the first half of 2021, Lenovo
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`Group had roughly a 25% market share of the global PC market and a 15% market share in the
`United States. In 2020 alone, Lenovo Group shipped over 10 million computers to the United
`States.2
`20. Within the United States, Lenovo employs thousands of employees across its
`operations, sales, research, manufacturing, and call centers in California, Georgia, North Carolina,
`and Texas. Lenovo’s customers include individual consumers, small to medium-sized businesses,
`state and local governments, healthcare providers, K-12 and higher education organizations, and
`large corporations.
`21.
`Lenovo does not have any physical retail stores in the United States. Instead,
`Lenovo directly markets and sells its products and services directly to customers through its
`website, lenovo.com.3 In June 2021, Lenovo’s website received over 100 million visits, of which
`approximately 18% originated from the United States.4
`22.
`Lenovo’s online success has in significant part resulted from its use of false regular
`prices, false discounts, and fake limited-time offers, which Lenovo advertises are “available
`exclusively online at Lenovo.com.”
`A.
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`Lenovo’s Pricing Scheme
`23.
`Lenovo creates an illusion of savings on its website by advertising false regular
`prices and false discounts based on those prices.
`Before August 25, 2021, Lenovo perpetrated this scheme by advertising a regular
`24.
`price—i.e., the product’s full, non-discounted price—which it typically displayed as the “Web
`Price,” “Base Price,” or simply as a price in strikethrough typeface (e.g., $1,199.99). The Web
`Price, Base Price, and strikethrough price were used interchangeably on Lenovo’s website.
`Below the regular price, Lenovo advertised a sale price, which was typically
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`described as the “After Instant Savings” or “After eCoupon” price. This price (or the lower of the
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`2 Sources: https://news.lenovo.com/pressroom/press-releases/lenovo-climbs-to-159-on-fortune-
`global-500-list; https://www.gartner.com/en/newsroom/archive.
`3 Customers that access Lenovo’s website from the United States are automatically redirected to
`Lenovo’s U.S. website aimed at customers in the United States: https://www.lenovo.com/us/en/pc.
`4 Source: https://www.semrush.com/analytics/traffic/overview/lenovo.com.
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 7 of 47
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`two prices when both were advertised) was the price at which Lenovo sold the product.
`Below the sale price, Lenovo advertised a discount or savings, which was typically
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`displayed as a dollar amount equal to the difference between the regular price and the sale price.
`Lenovo also advertised the discounts as a percentage equal to the amount of savings divided by the
`regular price. Lenovo prominently advertised the purported savings on its website alongside words
`or phrases such as “Savings of,” “Instant Saving,” “SAVE ___%” “You’re saving,” and “Item
`Discount.”
`27.
`On August 25, 2021, Lenovo redesigned its website, but the substance of its
`deceptive pricing scheme remains the same. For example, instead of referring to the regular price
`as a “Web Price,” Lenovo now displays it as a strikethrough price. Instead of displaying the sale
`price after the terms “After Instant Savings” or “After eCoupon,” Lenovo displays it in larger font
`directly below the strikethrough price. Lastly, instead of advertising the discount as either the
`dollar amount or percentage saved, Lenovo now almost always advertises it as both.
`28.
`Below are examples of the same product advertised on Lenovo’s website from
`before and after the redesign.
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`August 24, 2021
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`August 27, 2021
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`29.
`Plaintiffs and other reasonable consumers interpret Lenovo’s Web Prices and
`strikethrough prices to represent the actual price at which Lenovo regularly sells its question.
`Indeed, Lenovo expressly states on its website that the advertised savings are “referenced off
`regular Lenovo web prices.”
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 8 of 47
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`30.
`After customers add a product to their online shopping cart on Lenovo’s website,
`they are directed to additional pages where Lenovo offers them additional software, services, and
`accessories. On each of these pages, Lenovo prominently displays the regular prices of the
`products being purchased and the savings the customers are purportedly receiving. Below are
`examples of these representations made to customers during the checkout process from before and
`after the redesign.
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`August 10, 2021
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`August 27, 2021
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`31.
`Once customers reach the page displaying their online shopping cart, Lenovo again
`displays the regular prices of the products in their cart and the savings the customers are
`purportedly receiving. Below the estimated total, Lenovo tells the customers in bold, green font
`“You’re saving ____.” Below are examples of these representations made to customers in their
`online shopping carts from before and after the redesign.
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`August 10, 2021
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 9 of 47
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`August 27, 2021
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`32.
`Customers are then directed to the checkout page where they input their shipping
`address and credit card information and place their order. On the checkout page, Lenovo again
`promises customers savings equal to the difference between the advertised regular price and the
`price to be paid by the customers. These terms are part of the contract that is entered into between
`Lenovo and its customers, and are part of the bargain that is struck between them.
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`August 10, 2021
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`August 27, 2021
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`33.
`The savings promised by Lenovo are memorialized in an order confirmation Lenovo
`sends to customers after receiving their order.
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 10 of 47
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`B.
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`Lenovo’s False Regular Prices and False Discounts
`34.
`For the vast majority of products offered on Lenovo’s website for the vast majority
`of the time, Lenovo advertises a regular price, a sale price, and a corresponding discount. But
`discovery will show that the vast majority of regular prices are false because they do not represent
`the actual prices at which Lenovo formerly sold the products for a reasonably substantial period of
`time.
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`35.
`Lenovo’s pricing scheme is misleading because Lenovo’s “regular” prices do not
`reflect the actual regular prices, as Plaintiffs and reasonable consumers understand that term, and
`the advertised “savings” do not represent the actual savings, as Plaintiffs and reasonable consumers
`understand that term. Moreover, Lenovo’s regular prices violate California law because they do not
`reflect the prevailing market price during the previous three months.
`36.
`For example, on July 15, 2021, Lenovo advertised a ThinkPad X1 Carbon Gen 8
`Intel (14”), part number 20U9001NUS (“X1 Laptop”)—the same laptop Plaintiff Axelrod
`purchased. Lenovo advertised that the laptop’s regular price was $2,279, and offered it for sale for
`40% off, or $1,367.40. Yet, discovery will show that since releasing the X1 Laptop in or around
`June 2020, Lenovo rarely, if ever, sold the laptop for anywhere near the advertised regular price of
`$2,279, as indicated by the pricing data below.
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`Advertised Prices of X1 Laptop
`Reg. Price
`Sale Price
`$2,279.00
`$1,595.30
`$2,279.00
`$1,367.40
`$2,279.00
`$1,367.40
`$2,279.00
`$1,249.99
`$2,279.00
`$1,367.40
`$2,279.00
`$949.99
`$2,279.00
`$949.99
`$2,279.00
`$949.99
`$2,279.00
`$949.99
`$2,319.00
`$1,391.40
`$2,319.00
`$1,391.40
`$2,329.00
`$1,397.40
`$2,349.00
`$1,409.40
`$2,279.00
`$1,367.40
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`Date
`6/15/20
`7/13/20
`8/12/20
`9/15/20
`10/15/20
`11/15/20
`12/15/20
`1/9/21
`2/17/21
`3/13/21
`4/16/21
`5/10/21
`6/15/21
`7/15/21
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`37.
`Lenovo’s use of false regular prices is so deeply ingrained in its marketing strategy
`that often when Lenovo increases the sale price of a product, it also increases the regular price so as
`to maintain a certain percentage discount. For example, between April 16, 2021 and June 15,
`2021, Lenovo incrementally increased the sale price of the X1 Laptop. With each increase to the
`sale price, Lenovo increased the regular price by a proportional amount so as to maintain a 40%
`discount, as shown below.
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`Advertised Discount of X1 Laptop
`Reg. Price
`Sale Price
`$2,319.00
`$1,391.40
`$2,329.00
`$1,397.40
`$2,349.00
`$1,409.40
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`Discount
`40%
`40%
`40%
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`Date
`4/16/21
`5/10/21
`6/15/21
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`38.
`The parallel increases to the sale price and regular price demonstrate that the regular
`prices did not reflect the actual price at which Lenovo formerly sold the X1 Laptop. Rather,
`Lenovo deliberately inflated the regular price to convey a false sense of savings to potential
`customers—here, 40% off.
`39.
`Discovery will show that Lenovo’s increases to the sale price and regular price were
`uniform across Lenovo’s ThinkPad X1 product line. For example, below are tables reflecting price
`increases for two other ThinkPad X1 laptops over the same time period. For each laptop, Lenovo
`increased the sale price and regular price in parallel to maintain a 40% discount, as shown below.
`
`Advertised Discount of ThinkPad X1, #20U9005LUS
`Date
`Reg. Price
`Sale Price
`Discount
`4/16/21
`$3,219.00
`$1,931.40
`40%
`5/10/21
`$3,229.00
`$1,937.40
`40%
`6/15/21
`$3,249.00
`$1,949.40
`40%
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`Advertised Discount of ThinkPad X1, #20U9005MUS
`Date
`Reg. Price
`Sale Price
`Discount
`4/16/21
`$3,259.00
`$1,955.40
`40%
`5/31/21
`$3,269.00
`$1,961.40
`40%
`6/15/21
`$3,289.00
`$1,973.40
`40%
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`40.
`Below is an example of the 40% discount that was advertised across Lenovo’s
`ThinkPad X1 product line in April 2021.
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`April 8, 2021
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`
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`41.
`Discovery will show that Lenovo advertises false regular prices and false discounts
`for nearly every product offered for sale on its website. For example, below are charts reflecting
`the regular and sale prices of ten different products advertised on Lenovo’s website for a period of
`more than three months. As shown, the sale price rarely, if ever, equals the regular price.
`Furthermore, for several products, Lenovo appears to have increased the advertised regular price
`despite not having previously sold the product at that price.
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`42.
`Lenovo perpetually advertises false regular prices and false discounts on its website.
`For example, on May 10, 2021, Lenovo advertised eleven different rack servers for sale on its
`website. Lenovo advertised that each server was significantly discounted—ranging between 40%
`and 58% off the regular price—and represented that customers were saving anywhere between
`$624.90 and $3,679.25. Over the next three months, Lenovo continued to advertise each of the
`servers at a significant discount, and only for a fraction of the days did Lenovo advertise any of the
`servers at regular price, as shown below.
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`Rack Server Prices from May 10, 2021 to August 23, 2021
`Days of
`Days at regular
`Average
`data
`price
`Discount
`102
`4
`48%
`101
`-
`47%
`100
`-
`40%
`101
`-
`53%
`101
`-
`38%
`101
`-
`54%
`101
`4
`51%
`101
`4
`52%
`96
`-
`43%
`101
`4
`51%
`101
`-
`56%
`
`Part Number
`7D2VA01ANA
`7D2XA01HNA
`7X02A0D7NA
`7X04A0AANA
`7X06A0HLNA
`7X08A0A0NA
`7X99A08FNA
`7Y03A086NA
`7Y51A07LNA
`7Y99A01CNA
`7Z01A03DNA
`
`
`43.
`As of the filing of this Complaint, Lenovo continues to advertise each of the servers
`above at a significant discount off the advertised regular price.
`44.
`Pricing data collected by Plaintiffs’ counsel for hundreds of products on Lenovo’s
`website over the course of more than three months revealed that on average, Lenovo’s products are
`on sale approximately 75–80% of the time.
`C.
`
`Lenovo’s Fake Limited-Time Offers
`45.
`In addition to advertising false regular prices and false discounts, Lenovo further
`misrepresents that the discounts are available only for a limited time. By giving potential
`customers the false impression that they will miss out on the advertised markdowns if they do not
`make a purchase soon, Lenovo induces customers to make purchases they would not have
`otherwise made and deters them from shopping at competitor websites.
`
`
`
`
`
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 15 of 47
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`
`46.
`For that reason, the FTC’s Guide Against Deceptive Pricing provides:
`[Retailers] should not offer an advance sale under circumstances where they do not in
`good faith expect to increase the price at a later date, or make a “limited” offer which,
`in fact, is not limited. In all of these situations, as well as in others too numerous to
`mention, advertisers should make certain that the bargain offer is genuine and truthful.
`
`16 C.F.R. § 233.5.
`47.
`Lenovo employs a variety of means to impart this false sense of urgency on potential
`customers. One way is by simply advertising that its discounts will not last. Below are a few
`quoted examples of such statements found throughout Lenovo’s website.
`• The limited time discounts and deals on laptops found here can save you
`some serious coin on a new laptop for work, school, home, or gaming.
`
`• These are the best deals for laptops, don’t miss them.
`
`• Shop now while we have the best deals on laptop computers.
`
`• Don’t miss these Lenovo promo codes and the best deals for computers as
`they may not last!
`
`• For a limited time only, pay what Lenovo employees pay on select products.
`
`• Don’t miss today’s doorbusters.
`
`• Find the best deals on laptops today.
`
`• This weekend only!
`
`48.
`Another way Lenovo imparts a false sense of urgency on customers is by using fake
`coupon codes it calls “eCoupons.”
`49.
`Ordinarily, coupons are used by retailers to sell the same product at two different
`prices. As the theory goes, cost-sensitive shoppers who are unwilling to pay regular price will still
`purchase the item if a coupon is available. On the other hand, cost-insensitive shoppers will pay
`regular price regardless of whether a coupon is available. By selling the same item at a lower price
`to customers who are not willing to pay more, and at a higher price to customers who are, a retailer
`can bring in more revenue than by either (a) selling the item to both customers at the lower price, or
`(b) selling the item to only one customer at the higher price. Thus, online retailers generally do not
`advertise their coupons on their own website, for doing so would result in both types of customers
`taking advantage of the coupon’s discount, thereby defeating the purpose of offering a coupon in
`
`
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 16 of 47
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`
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`the first place. Moreover, virtually every online retailer requires that customers take some action,
`such as entering the coupon code during the checkout process, in order to receive the benefits of the
`coupon.
`50.
`Lenovo is unique among online retailers in that it both prominently displays its
`coupons on its website and does not require that customers take any action to receive the coupons’
`benefits. As stated on Lenovo’s website, “Lenovo coupon codes deliver deep discounts on top
`[sic] Lenovo’s laptop discount sale. Just click ADD TO CART on any product listed with a
`Lenovo eCoupon and the savings will apply automatically at checkout.” In other words, every
`customer receives the savings associated with Lenovo’s coupons, regardless of whether the
`customer enters the coupon code during checkout, or is even aware of the coupon’s existence. But
`automatically applying the coupon to all customer purchases defeats the very purpose of using
`coupons in the first place—that is, to charge different prices to different customers.
`51.
`Lenovo’s eCoupons are a sham. Lenovo uses them merely as another means of
`misleading customers into believing that its discounts will not last. Indeed, that is precisely what
`Lenovo tells customers on its website: “Don’t miss these Lenovo promo codes and the best deals
`for computers as they may not last!”
`52.
`One way Lenovo accomplishes this deception by incorporating specific words and
`references into the coupon codes that indicate the discount will soon expire.
`53.
`For example, on March 13, 2021, Lenovo advertised the regular price of Plaintiff
`Axelrod’s X1 Laptop as being $2,319. However, Lenovo told customers they could save $927.60 if
`they “Use eCoupon: THINKMAR”5—a reference to Lenovo’s ThinkPad line of computers and
`the month of March. A reasonable consumer is thus led to believe that the coupon code and
`corresponding savings will expire at the end of March.
`54. While the coupon code did in fact expire at the end of March, the corresponding
`savings did not. Instead, Lenovo merely updated the coupon code to THINKAPR and continued to
`advertise the laptop at the same price and discount.
`
`
`5
`This statement is in itself misleading because customers do not have to “use” the coupon to
`receive the discount. As discussed above, Lenovo’s coupons automatically apply to all customers.
`
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 17 of 47
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`
`
`March 13, 2021
`
`April 16, 2021
`
`
`
`
`55.
`Lenovo’s use of fake coupon codes is pervasive and uniform. For example, Lenovo
`used the same ploy when advertising the ThinkPad X1 P/N 20U9005MUS. In March, Lenovo
`advertised a 40% discount together with the coupon code THINKMAR. But, predictably, the 40%
`discount did not expire at the end of March. Lenovo merely updated the coupon code to
`THINKAPR and continued to advertise the laptop at the same price and the same discount.
`
`March 9, 2021
`
`April 8, 2021
`
`
`
`56.
`Similarly, on June 28, 2021, Lenovo advertised the regular price of the ThinkPad X1
`P/N 20U9005MUS as being $3,289. However, Lenovo told customers they could save $1,315.60 if
`they “Use eCoupon: THINKJUNE.” A reasonable consumer considering purchasing the laptop is
`
`
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 18 of 47
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`
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`thus induced to complete her purchase within two days (before the end of June) lest she miss out on
`the discounted price of $1,973.40. In fact, she would have been better off waiting because in July,
`Lenovo began selling the laptop for $1,931.40—forty dollars less than the price in June.
`
`June 28, 2021
`
`July 5, 2021
`
`
`57.
`The table below reflects discounts and corresponding coupon codes Lenovo
`advertised for the ThinkPad X1 P/N 20U9005MUS over a span of five months. As shown, each
`month Lenovo updated the coupon code to incorporate the name of the new month, while
`continuing to advertise the laptop at 40% off.
`
`
`
`Date
`2/3/21
`3/9/21
`3/31/21
`4/6/21
`4/16/21
`5/31/21
`6/28/21
`7/5/21
`
`Coupon Codes for ThinkPad X1 P/N 20U9005MUS
`Reg. Price
`Sale Price
`Discount
`Coupon Code
`$3,219.00
`$1,931.40
`40%
`THINKFEB
`$3,259.00
`$1,955.40
`40%
`THINKMAR
`$3,259.00
`$1,955.40
`40%
`THINKMAR
`$3,259.00
`$1,955.40
`40%
`THINKAPR
`$3,259.00
`$1,955.40
`40%
`THINKAPR
`$3,269.00
`$1,961.40
`40%
`THINKMAY
`$3,289.00
`$1,973.40
`40%
`THINKJUNE
`$3,219.00
`$1,931.40
`40%
`THINKJULY
`
`
`
`58.
`In addition to the names of months, Lenovo uses other references in its coupon codes
`to mislead customers into believing they are getting a limited-time offer. Below are a few examples
`of such coupon codes.
`
`
`Coupon Code
`THINKSGIVING2
`DAYLIGHTSAVE10
`THINKEASTER
`MEMORIAL70
`GAMERDADS
`B2SCHOOLDB3
`
`Reference
`Thanksgiving
`Daylight savings
`Easter holiday
`Memorial Day
`Father’s Day
`Back to school
`
`
`
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`Case 4:21-cv-06770 Document 1 Filed 08/31/21 Page 19 of 47
`
`
`
`WEEKENDSALE
`WSCLEARANCE
`BLOWOUT30
`YOGAFIRESALE
`WSDOORBUSTER
`BFFLASHDEALS
`
`Weekend sale
`Clearance sale
`Blowout sale
`Fire sale
`Doorbuster
`Flash sale
`
`
`
`59.
`In addition to incorporating misleading words and references into its coupon codes,
`Lenovo appears to use fake progress bars to further induce customers to quickly make a purchase.
`For example, on November 17, 2020, Lenovo advertised the X1 Laptop at the discounted price of
`$949.99 together with the coupon code X1BLACKFRIDAY. Below the coupon code, Lenovo
`displayed a progress bar indicating that 77% of the coupons had been claimed. By implying the
`coupons were scarce, Lenovo goads customers into making a purchase to avoid missing out on the
`limited-time offer.
`60. While one would expect the percentage of claimed coupons to increase over time as
`more customers claim them, curiously, the exact opposite occurred. A week later, on November
`24, 2020, Lenovo advertised that only 65% of the coupons had been claimed.
`
`November 17, 2020
`
`November 24, 2020
`
`
`
`
`61.
`That the percentage of coupons claimed decreased, rather than increased, over time
`demonstrates the fraudulent nature of Lenovo’s coupon codes. Indeed, for at least two months after
`Lenovo represented initially represented that 77% of the coupons had been claimed, Lenovo
`continued offer the same laptop, at the same price,