Arhaus Fake Sales Settlement: $6M

California residents who made purchases on the Arhaus website between April 2, 2020 and Sept. 18, 2024, where the product displayed both a sale price and a higher reference price (crossed out or otherwise), and who have not already received a refund or credit.

Claimants should provide their Arhaus order number or other documentation such as a receipt, credit card statement or email confirmation showing the purchase.

Home furnishings retailer Arhaus has agreed to a $6 million settlement to resolve accusations that it tricked customers with phony sale pricing. The lawsuit claimed the company inflated its original prices to make discounts appear more impressive than they actually were.

Arhaus sells furniture, rugs, lighting and home décor through its website and retail locations across the country. The company markets itself as offering high-quality, artisan-crafted pieces, often with price tags to match.

According to the lawsuit, those prices weren't always what they seemed.

The complaint alleged that Arhaus displayed products with a sale price alongside a higher "original" or "compare at" price, suggesting customers were getting a significant deal.

The problem, plaintiffs claimed, was that the higher reference prices were artificially inflated or never actually charged in the first place. This made the discounts look deeper than they really were.

This type of pricing tactic, sometimes called "false reference pricing," violates California consumer protection laws. When shoppers see a slashed price next to a higher number, they naturally assume they're saving money off a legitimate original price. The lawsuit argued that Arhaus exploited this assumption to drive sales.

Arhaus has denied engaging in any deceptive practices and has not admitted wrongdoing. The company agreed to the settlement to avoid the cost and uncertainty of continued litigation.

How to File a Claim

California residents who shopped on the Arhaus website during the eligibility period and purchased items that appeared to be discounted from a higher price may qualify for compensation.

To file a claim, you'll need to provide your Arhaus order number or some form of proof showing your purchase. This could include an email order confirmation, a receipt, a credit card or bank statement or any other documentation that identifies what you bought and when.

Settlement payments will be calculated based on the amount each class member spent on qualifying purchases. Compensation may come in the form of cash or an Arhaus store credit gift card, though specific payment estimates have not been released.

If you already received a refund or account credit from Arhaus for your purchase, you're not eligible for additional compensation through this settlement.

The deadline to submit a claim, opt out or file an objection is Dec. 19, 2025. A final approval hearing is scheduled for Feb. 19, 2026.