Build-A-Bear Workshop Accused of Misleading Discount Practices

Case Overview: A class action lawsuit claims Build-A-Bear misled consumers with deceptive pricing practices, using inflated reference prices to create the illusion of significant discounts.

Consumers Affected: Consumers who purchased products from Build-A-Bear Workshop.

Court: U.S. District Court for the Central District of California

Build-A-Bear Workshop is facing a class action lawsuit alleging that it misleads consumers with inflated reference prices to create the appearance of discounts. The lawsuit claims that these reference prices are rarely, if ever, charged, and the advertised “sales” are simply the regular prices of the products.

Build-A-Bear Accused of Misleading Consumers with Fake Discounts

San Diego resident Cameron Perez filed the lawsuit after purchasing a product from Build-A-Bear’s website in June 2024. Perez claims that he decided to buy the item because of the advertised discount, which suggested he was saving money.

The filing states that Perez, like other consumers, trusted the listed reference price as an accurate reflection of the product’s value. Unbeknownst to him, Build-A-Bear had allegedly never sold the product at the inflated reference price in the 90 days before his purchase, which rendered the discount false.

“Defendant’s inflated reference prices and misleading discounts were significant and material misrepresentations that directly influenced Plaintiff’s purchase. Plaintiff relied on this false information in good faith. Had Plaintiff known the truth, he would not have bought the product for the price that he did,” the complaint asserts.

Lawsuit Alleges Build-A-Bear Uses Inflated Reference Prices

According to the lawsuit, Build-A-Bear routinely advertises products at “sale” prices with reference prices labeled as “regular” or “original.” The filing alleges that these reference prices are fictitious and give consumers the impression that they are getting a deal.

The complaint highlights a specific example involving a Rockets of Awesome Vest. On June 10, 2024, Build-A-Bear’s website listed the vest “on sale” for $24.75, marked down from an “original price” of $49.50. Over three months later, on September 30, 2024, the same product was still listed at the same “discounted” price, suggesting that the reference price was not legitimate.

Perez argues that by presenting inflated reference prices, Build-A-Bear misleads customers into believing they are receiving substantial savings, when in reality, they are paying the regular price of the product.

The lawsuit cites the Federal Trade Commission’s (FTC) rules against deceptive pricing, which prohibit the use of inflated reference prices to create the illusion of discounts. Under these guidelines, reference prices must represent actual prices at which the retailer has recently offered the product for sale.

Other Retailers Face Similar Lawsuits Over Deceptive Pricing

Build-A-Bear is not alone in facing accusations of misleading discount practices. A similar lawsuit was recently filed against Hobby Lobby, alleging that the retailer advertises perpetual “sales” on products never sold at the original prices. Another lawsuit accuses Under Armour of inflating original prices to create a false impression of savings.

In the Build-A-Bear Workshop class action lawsuit, Perez is seeking to represent a nationwide class of consumers who purchased products advertised with false discounts, as well as a California-specific subclass with additional legal protections under state law. He is asking for damages and injunctive relief. Specifically, he wants Build-A-Bear to stop using inflated reference prices and to refund money obtained through these alleged deceptive practices.

Case Details

• Lawsuit: Cameron Perez v. Build-A-Bear Workshop Inc.
• Case Number: 2:24-cv-10469-ODW-AS
• Court: U.S. District Court for the Central District of California

Plaintiffs' Attorneys

• Kyle McLean, Lisa R. Considine, David J. DiSabato, and Leslie Pescia (Siri & Glimstad LLP)

Have you shopped at Build-A-Bear Workshop? Share your experience with their pricing practices in the comments below.