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Closets by Design, CBD Franchising alleged to have misrepresented price discounts

Lawsuits

By Jenie Mallari-Torres | Jan 28, 2019


LOS ANGELES (Legal Newsline) – A Kentucky consumer alleges a closet organization system she purchased was deceptively advertised with false discounts.

Annemarie Newbold filed a complaint on behalf of herself and all others similarly situated on Jan. 14 in the U.S. District Court for the Central District of California against Closets by Design Inc. and CBD Franchising Inc. alleging unjust enrichment and other counts.

According to the complaint, the defendants offer design and installation services of custom closets at alleged discounts off regular or original retail prices.

"Defendants misrepresented the existence, nature and amount of price discounts on merchandise and services offered for sale by purporting to offer specific dollar or percentage discounts from 'regular' or 'original' retail prices," the suit states. "These purported discounts are false and misleading, however, because the 'regular' or 'original' prices advertised by defendants are fabricated or inflated, and do not represent the actual regular prices for defendants’ merchandise and services."

The plaintiff holds Closets by Design Inc. and CBD Franchising Inc. responsible because the defendants allegedly deceptively priced, marketed, advertised and sold merchandise.

The plaintiff requests a trial by jury and seeks judgment against defendants for damages, certify class action, declaratory and injunctive relief, restitution, costs, expenses, and attorneys’ fees, and further relief as may be just and proper. She is represented by John T. Jasnoch and Joseph A. Pettigrew of Scott + Scott Attorneys at Law LLP in San Diego, California and Thomas K. Boardman of Scott + Scott Attorneys at Law LLP in New York, New York.

U.S. District Court for the Central District of California case number 8:19-cv-00077

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