Build-A-Bear class action claims retailer falsely advertises fake regular prices

Build-A-Bear prices class action overview: 

• Who: A Build-A-Bear customer has sued the company.
• Why: The plaintiff says the company uses deceptive pricing to lure people to buy its products. 
• Where: The Build-A-Bear class action lawsuit was filed in a California federal court.

Build-A-Bear uses deceptive pricing tactics to trick customers into believing they are getting significant discounts on products and clothing on its website, a new class action lawsuit alleges.

Plaintiff Cameron Perez filed the class action complaint against Build-A-Bear Workshop Inc. on Dec. 5 in a California federal court, alleging violations of federal and state consumer laws, including the California Consumer Legal Remedies Act.

According to the complaint, Build-A-Bear advertises products with inflated “reference prices” or “regular prices” that it rarely charges. 

These reference prices allegedly create the illusion of a significant discount, enticing consumers to purchase items at the “sale” price. In reality, the Build-A-Bear class action lawsuit claims, the sale price is often the regular price at which the items are sold.

One example cited in the lawsuit involves a “Rockets of Awesome” children’s vest listed for $24.75, purportedly marked down from $49.50. The complaint alleges this reference price remained unchanged for more than three months, suggesting the higher price was fictitious.

“Build-A-Bear’s practice of falsely inflating reference prices in order to give the illusion of higher value, bigger discounts, and a false sense of time pressure, constitutes false advertising,” the  Build-A-Bear class action lawsuit states.

Federal law protects consumers from deceptive pricing, lawsuit states

The Federal Trade Commission (FTC) has long prohibited the use of deceptive reference prices, identifying the tactic as “deceptive pricing” that denies consumers the value of the bargain they believe they are receiving, the Build-A-Bear prices lawsuit states. 

Perez points out that Build-A-Bear reported revenues of $486.1 million in 2023. He claims Build-A-Bear’s practices violate federal standards, and that the company has profited off the alleged violation.

As a result, Perez is looking to represent anyone in the United States who purchased from the Build-a-Bear website one or more products that were advertised or promoted by “displaying or disseminating a reference price or discount for an item that was not advertised for sale at the reference price at any point in the 90 days preceding their purchase.”

Perez is suing for breach of contract, violations of state consumer laws and unjust enrichment, and seeks certification of the class action, damages, fees, costs and a jury trial.

Meanwhile, Build-A-Bear is also simultaneously facing claims that its Skoosherz stuffed toys infringe the copyright of Kelly Toy’s Squishmallows plushies.

What do you think of the allegations in this  Build-A-Bear class action? Let us know in the comments.

The plaintiff is represented by Kyle McLean, Lisa R. Considine, David J. DiSabato and Leslie L. Pescia of Siri & Glimstad LLP.

The Build-A-Bear class action is Cameron Perez v. Build-A-Bear Workshop Inc. Case No. 3:24-cv-02268-BEN-DEB in the U.S. District Court for the Southern District of California.

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