RugsUSA has been the target of two consumer class-action lawsuits in the United States for commercial fraud. Both claims allege that the company has made use of misleading advertising, advertising false offers in its electronic commerce. They add that it has not respected the Consumer Protection Law, making use of false offers and inflated prices and offering products with limited time discounts or only online sales exclusively when they weren´t.
RugsUSA is in trouble
“Consumers buy RugsUSA products believing that they are getting a discount—when in fact they are not,”. Rugsusaa famous carpet manufacturer in the United States, has been doubly demanded by its consumers. Why? It is accused of advertising discounted products when it was actually selling inflated valuations, misleading consumers and conditioning their purchases. RugsUSA, a. famous carpet manufacturer in the United States, has been doubly demanded by its consumers. Why?
It is accused of advertising discounted products when it was actually selling inflated valuations, misleading consumers and conditioning their purchases. Grant Zastrow, who is filing an individual complaint, filed his claim on March 17 of this year, alleging that the company was writing off false prices as pre-discount prices. They also say that they offered products for a limited time when the reality is that they were always available. All this sales fraud is happening globally.
On the other hand, the class action lawsuit filed on the same date is being represented by Keira McCarrell’s. This one reports the fraud committed in digital commerce. Fake discounts were offered for buying online when the product was available in store at the same price. Mc Carrell stated that “If consumers think that a sale will end soon, they are likely to buy now, rather than wait, comparison shop, and buy something else”, claiming that it is a manipulation strategy that intervenes in the consumer’s purchase decision.
The action law suits
Both Zastrow individually and Mc Carrel collectively agree that RugsUSA has engaged in fraudulent actions in their sales, as well as misleading advertising and scams. They specifically detail “breach of contract, breach of express warranty, intentional misrepresentation, unjust enrichment and violation of the Washington Consumer Protection Act”. A list too long to be ignored by the authorities, isn´t it?
In addition, it appears that these demands are not the first ones the firm has to face. According to McCarrel, his claim is based on the Oregon Law of Illegal Trade Practices, whose mission is to prevent companies from giving false explanations as to why their prices vary. What´s more, she adds that the company was sued for similar reasons last year, but continues to carry out the same fraudulent practices without consequences, having paid $14 million.
Have you bought in RugsUSA recently?
Both plaintiffs, Mc Carrell and Zastrow, share the mission of finding more users who have purchased on RugsUSA’s website after October 13, 2023, with the aim of representing them in court against the company. Both are fighting for a popular jury trial, compensation for legal and punitive damages for all components of the claims, including them.
These have not been the only lawsuits brought to large brands. Lowe’s Home Centers, L.L. Bean, Under Armour and Sleep Number Corp., also faced this scenario for the same reason; inflated false price offers and user purchase conditioning.
What other companies have faced lawsuits for violating legal regulations? Has it happened to your favorite brand? Find out here!
