A major home furnishings retailer has agreed to a $6 million settlement to resolve claims of misleading advertising, following allegations that customers were shown inflated original prices and exaggerated discounts on its website. Consumers contended that the misleading price information created the false impression of substantial savings, prompting a class action lawsuit that has now reached resolution.
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Arhaus, the company at the centre of the dispute, will provide compensation to eligible California residents who purchased one or more products on its website between April 2, 2020, and September 18, 2024. These purchases must have listed both a current sale price and a higher reference price, and customers must not have already received a refund or credit for these items. Under the settlement, Arhaus will offer class members a cash payment or a store credit gift card, determined by the amount paid for qualifying purchases.
Claimants are required to provide proof of purchase, such as an order number, receipt, or credit card statement, and must submit a valid claim by December 19, 2025, to receive compensation. The final approval hearing for the settlement is scheduled for February 19, 2026. While Arhaus has not admitted any wrongdoing, the agreement resolves the allegations and allows the retailer to move forward while providing redress to affected customers.
This settlement highlights the increasing scrutiny of advertising practices within the home furnishings sector and underscores the importance of transparency in pricing for consumers. It also serves as a reminder that businesses may face significant legal and financial consequences when marketing practices are perceived as misleading.
Source: www.topclassactions.com
