A class action lawsuit accuses online retailer Kroto of falsely claiming items for sale on their site are discounted, when they actually are not.
Kroto, founded in 2006 and operating under the name iCanvas, sells wall art and home décor, the suit says.
"Defendant advertises fake and inflated comparison reference prices to deceive customers into a false belief that the sale price is a deeply discounted
bargain price," says the lawsuit filed in U.S. District Court for the Central District of California. "Anyone visiting the website during a '30% off sitewide' promotion who buys an item on “sale” from a 'regular' price is being misled."
The company's business model "relies on deceiving consumers with fake sales," the suit states. "Defendant prominently displays on the landing page of the website some form of sale where all products are supposedly marked down by a specific percentage, for example, 25% or 30% off. When one sale expires, another substantially equivalent sale is promptly instituted. This cycle continues over and over."
The lawsuit seeks restitution to customers for the allegedly fraudulent practices plus punitive, statutory damages and legal fees.
The plaintiffs are represented by attorney Alexander E. Wolf, of Milberg Coleman Bryson Phillips Grossman PLLC.
Nelkin v. Kroto Inc., U.S. District Court for the Central District of California, 2:23-cv-08241.