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Monday, May 6, 2024

Suit: RugsUSA deceives customers with false markdown prices

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Picpedia/Nick Youngson

PORTLAND, Ore. (Legal Newsline) — RugsUSA is facing a class action lawsuit alleging it is deceiving consumers with its "strikethrough price" referenced on its website and that its actions violate state and federal law.

Christopher Korda, individually and on behalf of all others similarly situated, filed a complaint July 13 in the U.S. District Court for the District of Oregon against RugsUSA LLC alleging violation of Oregon's Unlawful Trade Practices Act and other claims. 

Korda alleges in his class action that he purchased a "Chroma Tree of Paradise Medallion Rug" from RugsUSA in September of 2022. He claims the "fictitious" $309.40 price, noted as the "strikethrough" price, is not a lower discounted price, is not based on comparable sales offerings or not the former price that the products were originally selling.

He claims RugsUSA falsely purported that the sale price of the rug at $123.70 was a 60% discount and alleges RugsUSA's sales tactics intentionally mislead consumers in violation of state and federal law. Korda further alleges the advertised false reference prices advertised by RugsUSA have harmed consumers who did not actually receive a bargain. 

Korda and the class seek monetary relief, interest, trial by jury and all other just relief. They are represented by Stanton Gallegos, Jermaine Brown of Markowtiz Herbold PC in Portland and Neal Deckant of Bursor & Bursor PA in Walnut Creek, California. 

U.S. District Court for the District of Oregon Portland Division case number 3:23-CV-01026-AR 

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