Sleepy’s Class Action Filed Over Gift Card Promotion Scheme

A Massachusetts shopper is suing Sleepy’s LLC along with a company that facilitates sales promotions for the retail mattress chain, alleging they mislead consumers with a gift card purchase offer but failed to disclose the gift card must be used by a certain time.

Plaintiff Dianna Khun filed the complaint Thursday, stating that Sleepy’s and Capitol Marketing Concepts Inc. schemed to deceive customers by offering promotional gift cards with the purchase of certain products in violation of Massachusetts and federal consumer protection laws.

“However, despite defendants’ advertising and representations to the public and consumers at large, Sleepy’s and Capitol purposefully concealed all of the relevant material conditions, limitations and restrictions associated with the gift cards (as required by federal regulation and Massachusetts statutory and regulatory law) in order to induce customers into purchasing products from Sleepy’s, but limiting consumers’ redemption and use of the same,” the class action lawsuit states.

In May, Khun says she purchased a Flex Supreme Breeze mattress, two box springs, two pillows, and a mattress protector from Sleepy’s, partly based on ads that offered a $300 gift card with the purchase of the mattress.

The class action lawsuit claims Khun attempted to redeem the gift card promised to her at the end of June, but come August the $300 Toys-R-Us gift card she chose had not arrived, despite confirmation from Capitol Marketing Concepts.

When she inquired about the status of the gift card, a Capitol employee reportedly told Khan that the gift card had not been redeemed online. The company then allegedly emailed her re-enabled links so Khan could once again redeem her gift card.

However, when she was unsuccessful in redeeming the gift card on September 28, she contacted Capital again. This time, she was reportedly informed that the gift card was no longer redeemable since the redemption period already ended, the lawsuit says.

Khun alleges that she was never informed when she purchased the Sleepy’s mattress that she would need to redeem the gift card promotion within 30 days of buying the mattress and that the actual gift card would only be valid for six months after the 30-day redemption period ended.

Khun is seeking to represent a Class of consumers who purchased a Sleepy’s product online or in-store where a gift card promotion was offered but did not disclose the gift cards had to be redeemed within a certain timeframe and were subject to certain restrictions.

She brings forth this claim against Sleepy’s and Capitol Marketing Concepts on grounds of negligent misrepresentation, fraud and deceit, breach of contract and unjust enrichment.

According to her complaint, she is asking for a declaratory judgment against the companies for their alleged failure to disclose the restrictions for the gift card promotion and subsequent violations of state and federal consumer protection laws.

Khun is represented by John R. Yasi, Michael C. Forrest and Brian P. McNiff of Forrest LaMothe Mazow McCullough Yasi & Yasi PC.

The Sleepy’s Gift Card Promotion Class Action Lawsuit is Dianna Khun, et al. v. Sleepy’s LLC, et al., Case No. 16-3409C, in the Suffolk County Superior Court.

UPDATE: September 2018, the Massachusetts Sleepy’s gift card promotion class action settlement is now open. Click here for more information.