Cozy Earth Lawsuit: Were Shoppers Fooled by "Fake Sales"?

Case Overview: A class action lawsuit claims Cozy Earth misled shoppers by using "fake discounts" and inflated list prices to create the illusion of savings, violating California consumer protection laws.

Consumers Affected: California shoppers who purchased items from Cozy Earth's website.

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

California shoppers Andrea Persson and Johnathan Acevedo thought they were taking advantage of special deals when they purchased sheets, towels, and other home goods from Cozy Earth. 

The brand’s website displayed bold markdowns, often advertising savings of “20–25% Off.” To the plaintiffs, those discounts suggested limited-time offers and a chance to buy premium products for less.

What they claim they got instead was a marketing scheme built around inflated list prices that were never real. A new lawsuit filed in California federal court accuses Cozy Earth of using “fake discounts” to create the illusion of savings. 

Persson and Acevedo argue that the advertised deals were not genuine reductions, but rather ongoing prices presented as short-term bargains.

Lawsuit Claims Cozy Earth's Discounts Were Not Genuine

The complaint says Cozy Earth’s products were never sold at the higher reference prices shown on its website. Instead, the bedding, pillows, and loungewear were always available at the so-called discounted price. 

According to the lawsuit, this practice tricked shoppers into thinking they were getting a special deal when, in reality, the discounts were permanent.

Shoppers Say They Would Have Paid Less for Products

The plaintiffs say they relied on those representations when deciding to buy. Both argue they would have paid less—or not purchased at all—if they had known the discounts were misleading. 

Acevedo noted that he might consider purchasing from Cozy Earth again in the future, but only if he could be sure the prices and discounts reflected true market value.

In their filing, Persson and Acevedo accuse Cozy Earth of misrepresentation and false advertising. They claim the brand violated California’s consumer protection laws by promoting discounts that didn’t exist, gaining an unfair advantage over competitors who advertise honestly. 

They also accuse the company of breaching contracts with customers who paid more than they otherwise would have.

Retailers Face Growing Legal Pressure Over Fake Sales

Retailers across different industries have faced lawsuits accusing them of running perpetual discounts. Earlier this year, Helzberg Diamonds was targeted for advertising “limited-time” promotions on jewelry, complete with countdown clocks meant to pressure shoppers into quick purchases. According to that complaint, the discounts never actually expired, despite the deadlines displayed online and in stores.

Around the same time, Lowe’s was accused of using inflated reference prices on home improvement products. Plaintiffs said tags and online listings showed exaggerated “original” prices, leading buyers to believe they were saving money when the items had never been sold at those higher amounts.

For Persson and Acevedo, the issue goes beyond Cozy Earth’s luxury bedding and towels. Their lawsuit claims that constant discounts distort the entire shopping experience, creating a false sense of urgency and misleading customers about the true value of what they’re buying.

The case asks for refunds for consumers who say they overpaid, along with other financial remedies. It also asks the court to require Cozy Earth to stop advertising discounts unless they represent actual price reductions. A jury trial has been requested.

Case Details

• Lawsuit: Persson, et al. v. Cozy Earth Holdings Inc.
• Case Number: 8:25-cv-01294
• Court: U.S. District Court for the Central District of California

Plaintiffs' Attorney:

• Jonas B. Jacobson and Martin Brenner (Dovel & Luner LLP)

Do you shop from brands that advertise steep discounts year-round? Have you ever questioned whether those sales were real? Share your thoughts in the comments below.