Class Action Lawsuit Claims Joybird Advertises Furniture, Home Décor at Fake Discounts

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A proposed class action alleges that furniture and home décor products sold on Joybird.com and at Joybird retail showrooms are perpetually offered at fake discounts that deceptively “lure” consumers with the promise of huge savings.

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The 40-page lawsuit, filed in California against Joybird owner La-Z-Boy Inc., claims the retailer has violated state and federal law by engaging in what’s known as a false reference pricing scheme. The case charges that as part of this scheme, the defendant advertises its products at a fabricated original, or reference, price in black font with a strike through it next to a cheaper “sale” price in red. However, Joybird’s furniture and home décor are “rarely, if ever,” sold at their purported original price, the complaint contends.

The filing claims that these “phantom markdowns” mislead consumers into believing Joybird’s products have a higher market value than they actually have and trick them into making purchases they otherwise would not have made.

“[R]etailers like [La-Z-Boy], who understand that consumers are susceptible to a bargain, have a substantial financial interest in making consumers think they are getting a bargain, even when they are not,” the case reads. “Contrary to the illusory bargains in [the defendant’s] advertisements, consumers are not receiving any discount and are actually overpaying for [the company’s] product.”

The plaintiff, a California resident, says he bought a sectional sofa and two armless chairs at one of Joybird’s showrooms in Los Angeles last year, largely due to signs that displayed the items’ “original” prices accompanied by “40% off” advertisements.

Per the filing, Joybird’s representation that the furniture pieces were being offered at a significant discount was integral to the plaintiff’s purchase decisions, and, as the suit tells it, the man would not have bought the items had he known he was not receiving the bargain he thought he was. The plaintiff also alleges that the furniture on display at Joybird’s showroom was of lower quality than the purportedly “identical” products shipped to him.

The lawsuit looks to represent anyone in California who, during the applicable statute of limitations period, purchased at least one product that was discounted from an advertised reference price and has not received a refund or credit for their purchase from Joybird.com, any website redirecting to Joybird.com or a Joybird retail store.

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