On the heels of Mattress Firm’s latest class action lawsuit about dubious discounts, online mattress retailer Saatva has settled a $11.5 million lawsuit that claims the retailer violated California and Oregon laws with deceptive discount advertising.
According to the lawsuit, Saatva misrepresented discounts on its website, which deceived consumers into thinking they received good deals on products. This false advertising allegedly violated California and Oregon state laws.
California has several laws against discount advertising.
Its false advertising law states that promotional sale prices must be a discount from the original price and that the item must have been available for purchase at the original price before the sale price was advertised. It also states that if an item is always on sale, the seller is engaging in false advertising.
The Unfair Competition Law prohibits any unfair, deceptive, untrue, or misleading advertising. Consumers and competitors can sue under the UCL, and remedies include injunctions and restitution.
Oregon also has multiple laws against deceptive advertising, as well as the Uniform Deceptive Trade Practices Act, which allows private citizens to take action against a company that engages in deceptive advertising.
Saatva hasn’t admitted to any wrongdoing but agreed to provide around $11.5 million in benefits to resolve the false advertising suit.
The settlement benefits California residents who placed one or more mattress orders on Saatva.com between May 23, 2020, and May 23, 2024, and Oregon residents who placed one or more mattress orders on Saatva.com between May 23, 2023, and May 23, 2024.
Under the terms of the settlement, class members will receive a $115 benefit as either a cash payment or store credit voucher.
