HARRISBURG – Attorney General Michelle Henry announced that her office has filed a lawsuit against Digital Dream Labs regarding the robotics and educational-technology company’s widespread failures to fulfill orders, issue refunds, or respond to consumer requests.
Since November 2020, Digital Dream Labs marketed several in-home companion robots: Vector 2.0, Cozmo 2.0, and the Butter Robot. According to the Office of Attorney General’s lawsuit, approximately 14,000 orders for the robots were placed between November 2020 and January 2024, most of which were not fulfilled.
Customers who prepaid were not provided refunds or updates on delays, according to the suit, which seeks restitution for consumers, civil penalties and costs. The suit also seeks to prohibit Digital Dream Labs from accepting prepayment for products in Pennsylvania.
“Consumers paid significant costs for these products, never received them, and were left out in the cold when they asked for updates or refunds,” Attorney General Henry said. “This suit seeks to make Pennsylvania consumers whole while holding the company accountable for neglecting buyers.”
The lawsuit accuses Digital Dream Labs LLC and its CEO Harold Jacob Hanchar of violating Pennsylvania’s Consumer Protection Law by failing to provide prepaid merchandise in a timely manner; making misrepresentations as to advertised delivery dates; failing to notify consumers of their right to cancel; denying consumers the ability to cancel undelivered orders; and failing to issue prompt, full refunds to consumers.
The lawsuit alleges that this conduct also shows Digital Dream Labs’ noncompliance with the Federal Trade Commission’s Rule on Mail, Internet or Telephone Order Sales.
Impacted consumers paid between $147 and $655 for each robot — combined sales exceeded $4 million.
The lawsuit alleges that despite the passage of several years, Digital Dream Labs has failed to deliver any of the Cozmo 2.0 and Butter Robot orders and has also failed to deliver many of the Vector 2.0 orders.
The lawsuit seeks restitution along with civil penalties and costs while aiming to permanently prevent Digital Dream Labs and Hanchar from engaging in any business practices that violate Unfair Trade Practices and Consumer Protection Law. This includes banning them from taking advanced payment for any future sales of goods.
Any consumers who believe they may be victims of these practices should file a complaint with the Bureau of Consumer Protection at www.attorneygeneral.gov, call 800-441-2555 or email scams@attorneygeneral.gov.
This lawsuit was filed by Deputy Attorney General Jaimie L. George in Allegheny County.