Two class action lawsuits allege RugsUSA uses fake sales to trick consumers

RugsUSA class actions overview:

• Who: Two consumers filed class action lawsuits against RugsUSA LLC.
• Why: The plaintiffs claim RugsUSA misled consumers into believing they were purchasing its products at a discount by advertising fake sales.
• Where: The RugsUSA class actions were filed in Oregon and Washington federal courts.

Two new class action lawsuits allege RugsUSA advertised fake sales and discounts for years in order to mislead consumers into believing they were purchasing its products at a discount.

Plaintiff Grant Zastrow claims in his March 17 lawsuit that RugsUSA advertised its products using fake strikethrough prices, fake site-wide sales and “limited time” sales that were continuously available.

“Consumers buy RugsUSA products believing that they are getting a discount—when in fact they are not,” his RugsUSA class action says.

Meanwhile plaintiff Keira McCarrell’s class action lawsuit, also filed March 17, says RugsUSA advertises fake sales and discounts on its website, leading consumers to believe they are getting a deal when they are actually paying full price.

“Consumers are more likely to purchase an item if they know that they are getting a good deal,” the class action says. “Further, if consumers think that a sale will end soon, they are likely to buy now, rather than wait, comparison shop, and buy something else.”

RugsUSA advertised ‘limited time’ discounts that ran in perpetuity, class actions claim

Zastrow claims RugsUSA advertised steep discounts on its products that ran in perpetuity despite being advertised as “limited time only.”

“Even though in truth these discounts run in perpetuity, Defendant prominently claims that they are ‘LIMITED TIME ONLY.’”

He claims RugsUSA is guilty of breach of contract, breach of express warranty, intentional misrepresentation, unjust enrichment and of violating the Washington Consumer Protection Act.

McCarrell says RugsUSA was sued for similar practices last year and settled the case for more than $14 million, but the company continues to use fake sales to mislead consumers. She’s suing for violations of the Oregon Unlawful Trade Practices Act, which prohibits businesses from making false or misleading representations of fact concerning the reasons for, existence of or amounts of price reductions.

Both plaintiffs are looking to represent anyone who purchased a RugsUSA product advertised at a discount on the company’s website on or after Oct. 13, 2023, and are demanding a jury trial and an award of compensatory, statutory and punitive damages for themselves and all class members.

Late last year, consumers filed a number of similar fake sale lawsuits against Lowe’s Home Centers, L.L. Bean, Under Armour and Sleep Number Corp., alleging the companies advertise false discounts to trick consumers into believing they are getting a better deal than is actually the case. 

Have you purchased a product from RugsUSA? Let us know in the comments.

Zastrow is represented by Wright A. Noel of Carson & Noel PLLC, and Christin Cho, Simon C. Franzini and Jonas Jacobson of Dovel & Luner LLP. McCarrell is represented by Jonas Jacobson of Dovel & Luner LLP.

The RugsUSA fake sales class action lawsuits are Grant Zastrow v. RugsUSA LLC, Case No. 2:25-cv-00472, in the U.S. District Court for the Western District of Washington, and Keira McCarrell v. RugsUSA LLC, Case No. 3:25-cv-00454, in the U.S. District Court for the District of Oregon.

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