Consumers claim Cozy Earth fabricated discounts to drive sales

Cozy Earth class action lawsuit overview:

• Who: Consumers Andrea Persson and Johnathan Acevedo filed a class action lawsuit against Cozy Earth Holdings Inc.
• Why: Persson and Acevedo accuse Cozy Earth of falsely advertising “fake” sales and discounts on its products.
• Where: The Cozy Earth class action was filed in California federal court.

A new class action lawsuit alleges that Cozy Earth falsely advertises “fake” sales and discounts on its products, including bedding, pillows, towels and chairs.

Plaintiffs Andrea Persson and Johnathan Acevedo claim Cozy Earth misleads consumers into believing they are purchasing products at a steep discount.

Persson and Acevedo argue Cozy Earth advertises steep discounts on its products, such as “20-25% Off,” when in reality the discounts are available year-round.

“As a result, everything about Defendant’s price and purported discount advertising is false,” the Cozy Earth class action states. “The list prices Defendant advertises are not actually Defendant’s regular prices because Defendant’s Products are always available for less than that.”

Cozy Earth’s advertisements allegedly violate California law

Persson and Acevedo argue Cozy Earth’s advertisements violate California and federal law.

“Defendant’s misrepresentations were intended to induce reliance, and Plaintiffs saw, read and reasonably relied on the statements when purchasing Cozy Earth Products,” the Cozy Earth class action states.

Persson and Acevedo claim they would not have purchased Cozy Earth products, or would have paid less for them, had the company been truthful in its advertising.

“Cozy Earth’s customers face an imminent threat of future harm,” the Cozy Earth class action states. “For example, Mr. Acevedo would consider purchasing Products from Defendant again in the future if he could feel sure that Defendant’s regular prices accurately reflected Defendant’s former prices and the market value of the Products, and that its discounts were truthful.”

Persson and Acevedo claim Cozy Earth is guilty of breach of contract and express warranty, negligent misrepresentation, intentional misrepresentation, unjust enrichment and violating California’s False Advertising Law, Consumers Legal Remedies Act and Unfair Competition Law.

The plaintiffs demand a jury trial and request declaratory and injunctive relief and an award of damages for themselves and all class members.

Earlier, RugsUSA faced a similar class action lawsuit alleging it ran fake sales and discounts for years to mislead consumers into believing they were getting bargains.

Have you purchased a Cozy Earth product? Let us know in the comments.

The plaintiffs are represented by Jonas B. Jacobson and Martin Brenner of Dovel & Luner LLP.

The Cozy Earth class action lawsuit is Persson, et al. v. Cozy Earth Holdings Inc., Case No. 8:25-cv-01294, in the U.S. District Court for the Central District of California.

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