Extra Space Storage Class Action Alleges Bait-and-Switch Pricing

A class action lawsuit against Extra Space Storage Inc. claims the company uses bait-and-switch tactics to get customers to sign leases, then increases rent prices after they sign.

The Extra Space Storage class action lawsuit filed by Alexandru Ionescu, Lenay Johnson and Lamar Mosley was recently removed to California federal court.

Allegedly, Extra Space Storage advertises low rates when encouraging renters to sign a contract with the company, and then raises them later on.

The customers argue that Extra Space Storage should be upfront with customers that these advertised rates are “promotional” or “introductory,” and not representative of what customers will pay over time.

Ionsecu, Johnson, and Mosley say that reasonable customers would be misled by Extra Space Storage’s pricing structure, and would believe that the advertised price would be the long-term price.

The Extra Space Storage class action lawsuit asserts that customers have been financially harmed by being forced to pay higher fees than they thought they would have to pay.

Allegedly, had customers known that the rent would be higher than advertised, they might not have agreed to enter into a contract with the company.

The Extra Space Storage class action lawsuit argues that customers must rely on the representations from a company as to the terms of the agreement, and do not have a way of knowing that the representations are not accurate.

Additionally, the storage fees class action lawsuit asserts that customers who do not want to pay the elevated fees may be unlikely to break their contract with the company because they have already paid administration fees, and if they were to change rental companies, they would have to go through the hassle of moving and organizing their belongings.

The customers argue that Extra Space Storage Inc.’s actions violate California’s Unfair Competition Law, California’s False Advertising Law, and California’s Consumer Legal Remedies Act.

The customers seek compensation on behalf of themselves and all other customers who signed leases for storage units in California from Extra Space Storage from Jan. 28, 2015 to the present.

In addition to claiming that Extra Space Storage’s actions financially injured customers, Ionescu, Johnson, and Mosley argue that the company received unjust enrichment from the practice of hiking rent prices, because it was allegedly done to generate more profits for the company.

Allegedly, rents increased by a number of rates. The customers claim that their rent rates increased by $19 and $31 per month. They request that the company restore the money that they charged from the customers that exceeds the amount that would have been charged had the rent amount not increased from the agreed-upon, initial rental rate.

Ionescu, Johnson, and Mosley are represented by Sabita Soneji and Tanya Koshy of Tycko & Zavareei LLP.

The Extra Space Storage Rent Hike Class Action Lawsuit is Alexandru Ionescu, et al. v. Extra Space Storage Inc., Case No. 4:19-cv-02226-YGR, in the U.S. District Court for the Northern District of California.

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