$6M Arhaus Settlement Ends Class Action Lawsuit Over Allegedly Inflated Reference Prices Online

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Arhaus has agreed to pay up to $6 million to settle a class action lawsuit that alleged the furniture and home décor retailer deceptively displayed fake original prices for products online, and advertised items for sale at a steep discount from inflated reference prices that did not always reflect a product’s actual prior sale price.

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The Arhaus class action settlement received preliminary approval from the court on August 25, 2025, and covers anyone in California who purchased an Arhaus product from the company’s website between April 2, 2020 and September 18, 2024, where the purchased product listed both a current sale price and a referenced second, higher price (with or without a strikethrough), and has not been refunded or credited for their purchase.

The court-approved website for the Arhaus class action settlement can be found at https://ArhausSettlement.com/.

Arhaus settlement class members who submit a valid, timely claim form can receive a one-time, pro-rated share of the settlement fund based on their total qualifying purchase amount divided by the total combined purchase amount of all claimants during the relevant time period. For instance, if a class member spent $10,000 on Arhaus products and the total amount spent by all class members with valid claims during the class period was $1,000,000, then the consumer would receive one percent of the net settlement amount.

No Arhaus settlement class member will receive a share of the settlement that constitutes more than 50 percent of their total qualifying purchase amount, court documents state.

Per settlement documents, class members who submit a valid claim can elect to receive their payment by mail in the form of a check or an Arhaus gift card of equal amount. Those who elect to receive a check will have 120 days to cash their checks after the date of issuance before they become void and expire, the Arhaus settlement website says.

To submit an Arhaus claim form online, class members can head to this page and enter the class member ID found on their copy of the settlement notice. Those who believe they may be a class member but did not receive a class action settlement notice should contact the settlement administrator to confirm their identity and receive their login ID.

Alternatively, class members may download a PDF copy of the claim form to print, fill out, and return by mail to the address listed near the top of the form.

Arhaus settlement claim forms must be submitted online or by mail no later than December 19, 2025.

The court will determine whether to grant final approval to the Arhaus settlement at a hearing on February 19, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Arhaus class action lawsuit alleged that the retailer engaged in deceptive advertising by promoting higher original prices on its products for sale at a discount to convince consumers that they were getting a better deal or greater discount than they actually were.

“This practice allegedly misled customers into believing they were receiving substantial discounts on purchases, causing them to buy products they might not have otherwise purchased,” settlement documents summarize.

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