Pillow Cube Accused of Misleading Consumers With Fake Discounts

Case Overview: A class action lawsuit claims Pillow Cube misled consumers with fake discounts and inflated prices, violating consumer protection laws.

Consumers Affected: Consumers who purchased Pillow Cube products.

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

Pillow Cube, known for its specialty pillows, is facing a class action lawsuit accusing the company of deceiving consumers with false discounts. The lawsuit alleges that Pillow Cube advertises inflated “original” prices alongside lower “sale” prices, creating the illusion of limited-time offers that, in reality, never end. 

The practice, known as false reference pricing, is both deceptive and illegal under California and federal consumer protection laws, the lawsuit alleges. 

The lawsuit argues that Pillow Cube’s pricing scheme manipulates consumer behavior by making customers believe they are getting a better deal than they actually are, and that perpetual sales mislead shoppers, pushing them to buy products they might otherwise have skipped or shopped around for.

Consumers Allege Pillow Cube Uses Fake Discounts and Inflated Prices

San Diego resident Sara Adra and Sacramento resident Wayne Mitchell filed the lawsuit, alleging that Pillow Cube misled them into believing they were getting discounted prices. Adra says she purchased a Pillow Cube Side Sleeper Pro on Amazon for $89.99, which was advertised with a higher “sale” price that did not reflect the market value. 

Mitchell bought a Side Sleeper Ice Cube Pillow from Pillow Cube’s website for $134.99, with an inflated reference price of $179.99. Both plaintiffs argue they would not have made the purchases had they known the original prices were fabricated.

The pair allege that Pillow Cube generates millions in revenue from this pricing strategy, enriching itself at the expense of consumers.

How False Reference Pricing Influences Consumer Behavior

False reference pricing involves listing an inflated original price alongside a discounted sale price. This tactic leads consumers to believe they’re getting a good deal, even when the “sale” price is the regular cost of the item.

According to research, the practice manipulates consumers' perception of value, influencing their purchasing decisions. The research shows that discounts significantly increase the likelihood of purchases, with 80% of consumers reporting they’re more inclined to try a new brand if offered a discount.

Adra and Mitchell argue that Pillow Cube’s pricing scheme exploits this behavior, allowing the company to sell products above their true market value, while also artificially inflating the perceived value of the products, allowing the company to charge more than the actual market price.

Other Companies Face Lawsuits Over Deceptive Pricing Practices

Pillow Cube isn’t the only business accused of misleading consumers with fake discounts. Build-A-Bear Workshop faces a similar lawsuit, alleging that its reference prices are rarely, if ever, charged, creating the illusion of constant sales.

Retail giants Hobby Lobby, Under Armour, and Macy’s have also been sued for alleged deceptive pricing tactics. These lawsuits claim the companies inflate original prices to give consumers a false sense of savings, violating consumer trust and legal standards.

In their lawsuit against Pillow Cube, the plaintiffs want to represent consumers nationwide who purchased a pillow that use false reference pricing. They are suing for violations of California’s Unfair Competition Law and Consumers Legal Remedies Act, and are seeking damages, injunctive relief, restitutions, fees, costs, and interest. 

Case Details

• Lawsuit: Adra, et al. v. Pillow Cube, Inc., et al.
• Case Number: 3:24-cv-02313-JO-BJC 
• Court: U.S. District Court for the Southern District of California

Plaintiffs' Attorneys

• Michael T. Houchin, Craig W. Straub, and Zachary M. Crosner (Crosner Legal, P.C.) 

Have you purchased a Pillow Cube product? Share your experience with their pricing and discounts in the comments below.