Wayfair Falsely Advertised ‘Discount’ Prices, Class Action Says

Home goods retailer Wayfair Inc. was hit with a class action lawsuit earlier this week alleging it deceived consumers by advertising false former prices and false price discounts on its website.

According to the fake sale price class action lawsuit, “Wayfair misrepresented the existence, nature and amount of price discounts by purporting to offer specific dollar discounts from the expressly referenced former retail prices, which were misrepresented as ‘original’ or ‘regular’ retail prices.”

“These purported discounts were false, however, because the referenced former retail prices were fabricated and did not represent Wayfair’s true ‘original’ retail prices,” the Wayfair class action lawsuit continues. “Furthermore, the advertised ‘original’ prices for Wayfair’s items were not the prevailing market retail prices within three months next immediately preceding the publication of the advertised former prices, as required by California law.”

Plaintiff Heather Carson alleges she purchased $518.24 worth of home furnishings in July 2013 and $150.41 worth of home furnishings from Wayfair.com in December 2015. Carson says she was induced to purchase chairs from Wayfair because she believed the price she paid was significantly less than what the chairs would normally sell for in the marketplace, and because the website informed her that the sale price was only valid for a limited time.

Carson alleges that the former price advertised on Wayfair.com was not the prevailing market price for any of the chairs she purchased, and that Wayfair engaged in a classic “bait-and-switch” scheme that violates California law.

Plaintiff Mark Sanders-Ferriera says he purchased $499.98 worth of home furnishings from Wayfair.com in June 2015. Like Carson, Sanders-Ferriera says he was induced to purchase furniture from Wayfair because he was under the mistaken belief that the purchase price was significantly less than the market price. According to the Wayfair class action lawsuit, Sanders-Ferriera would not have purchased the furniture if not for Wayfair’s fake sale price advertisement.

Both Carson and Sanders-Ferriera claim that Wayfair intentionally duped them into purchasing home goods at the fake discount price. The Wayfair class action lawsuit asserts claims under California’s Unfair Competition Law, False Advertising Law and the Consumer Legal Remedies Act.

By filing the Wayfair class action lawsuit, the plaintiffs seek to represent California consumers who, between Feb. 1, 2012 and Feb. 1, 2016, purchased one or more consumer goods advertised at a 20 percent discount from the stated “original” or “regular” price, and one or more consumer goods at a higher price after being advised that the original item sought to be purchased is “Sold Out.” Consumers who have already received a refund or credit for their purchase(s) are not included in the proposed Class.

The fake sale price class action lawsuit seeks a judgment awarding plaintiffs and Class Members restitution and/or other equitable relief, as well as an order prohibiting Wayfair from continuing to promote false or deceptive sale prices.

Carson and Sanders-Ferriera are represented by Alexander Robertson IV and Robert Nation of Robertson & Associates LLP, Daniel K. Bryson and Patrick M. Wallace of Whitfield Bryson & Mason, Robert Ahdoot and Tina Wolfson of Ahdoot & Wolfson PC, and Sharon J. Carson of Berger & Montague PC.

The Wayfair Fake Sale Price Class Action Lawsuit is Carson, et al. v. Wayfair Inc., Case No. 2:16-cv-00716, in the U.S. District Court for the Central District of California.