Closets by Design is the latest retailer to face a lawsuit filed over the alleged sale of merchandise at fictitious discount prices.
According to the case, the defendants – Closets by Design, Inc. and CBD Franchising, Inc. – perpetually advertise their home organizer systems for 40 percent or $200 off, which leads customers to believe they are purchasing the items at a steep discount. In reality, the suit claims, the products are always sold at those “discounted” prices, meaning consumers receive no discount at all.
The lawsuit claims though the defendants have continuously offered 40-percent-off and $200-off coupons on their website since at least 2015, they have never sold their home organizer systems for the reference prices listed in advertising.
“Accordingly, the reference price and the supposed ‘sale’ based on the reference price are deceptive and misleading to reasonable consumers,” the complaint reads. “Defendants’ offers misrepresent the existence of a discount, the particular worth of Closets By Design products, the perceived value of those products, and the products’ resale or market value.”
The lawsuit looks to cover anyone who purchased a Closets by Design product subject to a “40% off” or “$200 off” discount “within the applicable statutes of limitations period preceding the filing of this action.”