Overstock class action lawsuit overview:
- Who: A group of four consumers filed a class action lawsuit against Beyond Inc., doing business as Overstock.com.
- Why: Overstock allegedly sends marketing emails to Washington consumers with false or misleading subject lines.
- Where: The Overstock class action lawsuit was filed in Washington state court.
A new class action lawsuit alleges Overstock sends emails to consumers that contain false or misleading information in the subject lines in violation of Washington’s Commercial Electronic Mail Act.
Plaintiffs Morgan Crouch, Mallory Santic, Elyse Sparks and Dalana Brown filed the class action lawsuit against Beyond Inc. on Oct. 27 in Washington state court.
The plaintiffs claim Overstock sends emails with subject lines that falsely represent unqualified discounts on purchases without disclosing material exclusions.
The subject lines imply a straightforward percentage discount on the recipient’s entire purchase, such as “15% off your entire order” or “15% off your purchase,” without limitations or exclusions, enticing consumers to open the email in anticipation of a broad bargain, the Overstock class action says.
“Upon opening the email, however, the body reveals that there are significant exclusions that do not qualify for the percentage discount,” the Overstock class action lawsuit claims.
Overstock sends misleading emails to drive sales, class action alleges
The plaintiffs also claim Overstock sends emails that misstate the duration of given promotions, in an apparent effort to drive sales by creating a false sense of urgency.
The subject lines of the emails falsely claim that a certain sale or discount is limited to a specific time, such as “ends today” or “ends tonight” or “ends very soon,” when, in reality, the offer lasts longer than advertised or the item has already been on sale for longer than advertised, the Overstock class action alleges.
“Defendant also uses its preconceived ‘sale extensions’ as an excuse to send consumers additional emails purporting to notify them that a sale is ending or that a sale has been extended,” the class action lawsuit says. “This practice causes consumers’ inboxes to become inflated with spam.”
The plaintiffs want to represent anyone residing in Washington who received Overstock’s allegedly misleading emails in the past four years.
They are suing for violations of Washington’s Commercial Electronic Mail Act and the Washington Consumer Protection Act and seeking certification of the Overstock class action, an injunction, damages, fees, costs and a jury trial.
Another furniture company, Basset, is facing allegations it has engaged in a “massive and consistent” false discount advertising scheme across its website and in its retail stores for years.
What do you think of the allegations made in this Overstock class action lawsuit? Let us know in the comments.
The plaintiffs are represented by Cory L. Zajdel and David M. Trojanowski of Z Law LLC.
The Overstock class action lawsuit is Crouch, et al. v. Beyond Inc. d/b/a Overstock.com, Case No. 25-2-02400-37, in the Superior Court of the State of Washington, County of Whatcom.
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