By Reg Wydeven
My time at law school at the University of Wisconsin in Madison was truly enriching, especially when it came to expanding my culinary horizons. Growing up in Kimberly and attending college in Eau Claire hadn’t exposed me to a wide variety of foods. Madison, however, was a melting pot of global cuisines. One memorable evening, my friends introduced me to the Parthenon restaurant, and more importantly, to gyros.
A gyro is a quintessential Greek delight, featuring savory shaved lamb served on pita bread, complemented by fresh tomatoes and onions. It’s often accompanied by tzatziki sauce, which, in my youthful culinary experimentation, I occasionally enhanced with ketchup – much to the Greek proprietor’s gentle amusement, I’m sure. Gyros are undeniably delicious, and thankfully, these Greek wraps are now widely available at places like Josef’s and Niko’s.
My fondness for gyros led to a humorous misunderstanding when I first heard about the euro. When the European Union established the euro as its common currency in 1999, I momentarily thought – perhaps wishfully – that the continent had unified under the banner of the gyro. In my mind, it seemed like a perfect, delicious form of global commerce. I even imagined a future where the U.S. might follow suit, allowing me to exchange legal Wills for dozens of these delectable Greek treats.
It was with considerable amusement, and a touch of disappointment, that I discovered gyros and euros, while sharing a similar pronunciation, are entirely different entities. This confusion, it turns out, isn’t unique to me. The recent lawsuit against Zara highlights a more serious, albeit related, form of “Greek Euro” confusion concerning currency and pricing.
Devin Rose recently initiated a class-action lawsuit in a Los Angeles federal court against Zara, the well-known European clothing retailer. The lawsuit, seeking over $5 million, alleges deceptive pricing practices in Zara’s U.S. stores. According to the claim, Zara frequently lists prices on clothing solely in euros, causing confusion and, more significantly, overcharging customers compared to the actual euro-dollar exchange rate.
Rose’s legal action was prompted by a purchase of three shirts at a Zara store in Sherman Oaks in May. The lawsuit states that while “the actual euro-dollar exchange rate would have meant his €9.95 shirts should have cost approximately $11.26 each, Zara instead charged Mr. Rose $17.90 per shirt—a markup of almost 60 percent.” Rose argues that “behind its façade of accessible elegance, Zara engages in a widespread bait-and-switch tactic, deceiving American consumers.” This case brings to light a critical issue of transparency in international retail and the potential for consumer confusion when dealing with “greek euro” pricing, or in this case, euro pricing in general.
The lawsuit demands that Zara implement accurate currency conversion at the point of sale. It also seeks to include “similarly situated” individuals—those who made purchases at Zara’s U.S. stores around the same time as Rose—allowing them to join the case and potentially share in any settlement. This legal challenge underscores the importance of clear and transparent pricing, especially for international retailers operating in diverse markets.
Zara, through a spokesperson, issued a statement to The Fashion Law, firmly denying any deceptive pricing practices in the United States. The spokesperson stated that while they hadn’t yet reviewed the lawsuit, “Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States. We pride ourselves on our fundamental commitment to transparency and honest, ethical conduct with our valued customers. We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defense in due course through the legal process.”
In response, Rose’s attorney, Ben Meiselas of Geragos & Geragos, issued a statement the following day, calling Zara’s initial response “beyond bizarre and desperate.” He reiterated the allegations of illegal practices and warned, “If Zara wants to double down on its duplicity, instead of acting like a responsible corporate citizen and fixing the mess of its own making, they should be prepared to face the wrath of the American consumer and the full force of the law.” This strong rebuttal suggests a potentially protracted legal battle, highlighting the complexities of international retail and consumer rights in the context of “greek euro”, or rather, euro, pricing.
Regardless of Zara’s culpability, the legal proceedings are set to be interesting. As for the attorney’s quote? Even if Zara is in the right, they’d better have a good lawyer – because that’s truly a quote for the legal ages.
Reg Wydeven is a partner at McCarty Law LLP in Appleton. He can be reached at [email protected].
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