Closets By Design Lawsuit Says Sale Prices are Fake

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

UPDATE: On Feb. 5, 2019, the plaintiff voluntarily dismissed the proposed Closets By Design class action lawsuit without prejudice. 

A proposed Closets by Design class action lawsuit says the custom closet company offers discounts that are inflated, drawing in customers based on the buyer’s belief in the misleading pricing scheme.

The proposed Closets by Design class action claims that the company offers services related to garage organizers, custom closets, home office systems, and entertainment centers.

These items and services are offered, according to the Closets by Design lawsuit, at a deep discount from the “original” price.

The lawsuit alleges that defendants misrepresented the nature, amount, and existence of price discounts on those services and merchandise items.

The lawsuit states that the defendants never offered the items or installation at the “original” or “regular” prices listed on the promotional materials.

Furthermore, the proposed Closets by Design class action lawsuit argues that the fake deep discounts were not even the retail market value for the three months prior to the publication or dissemination of the advertised prices.

In a statement to Top Class Actions, Closets by Design Inc. and CBD Franchising Inc. deny the plaintiff’s claims.

“Closets by Design® advertisements and pricing structures fully comply with the law. Appropriately, this meritless lawsuit was dismissed without any settlement shortly after it was filed and prior to the time any response was required once the Plaintiff’s lawyers were advised of the meritless nature of the complaint. Closets by Design® has, and always will, put customers first, including by offering opportunities to make the cost of custom closet, office, and home organization more affordable. We will continue to offer our high-quality product line with first-class service to customers across the United States and in Canada,” Closets By Design states.

The proposed Closets by Design class action lawsuit says that in addition to using misleading information to draw in consumers who were under the impression they were getting a great deal that these actions by the closet company violated California law.

The lawsuit states that consumers who were duped into making purchases would not have made the decision to buy if they had known the “regular” prices were actually false.

The proposed Closets by Design class action lawsuit was filed due to alleged violations of numerous laws, including the Consumers Legal Remedies Act, the Unfair Competition Law, and the California False Advertising Law.

The lawsuit seeks an injunction against the defendants from using false or misleading claims having to do with price comparisons in their advertising and marketing in addition to unjust enrichment and remedies available under the CLRA.

The proposed Closets by Design class action lawsuit alleges that coupons are used to present that customers are receiving a significant discount in making a purchase with the company for services or merchandise.

The proposed Closets by Design pricing discount class action lawsuit seeks to represent a Class of all people living in the U.S. who purchased the services or merchandise made by the defendants advertised at a discount during the limitations period.

A growing number of lawsuits point out problems with price discounting if the regular prices are fake and only used to encourage customers to buy because they believe they are getting a great deal.

The proposed Class is represented by John T. Jasnoch, Joseph Pettigrew, and Thomas K. Boardman of Scott + Scott Attorneys at Law LLP.

The Closets By Design Lawsuit is Annemarie Newbold v. Closets by Design, Inc., et al., Case No. 3:19-cv-00077-JKS-KES, in the U.S. District Court for the Central District of California.