A class action lawsuit filed on December 12, 2024, in the United States District Court for the Southern District of California alleges that Pillow Cube, Inc. and its CEO Jay Davis engaged in deceptive pricing practices that misled consumers about product discounts.

According to the legal complaint filed by plaintiffs Sara Adra and Wayne Mitchell, Pillow Cube advertised its products with "false reference prices" and corresponding "phantom sale prices" that created an artificial impression of savings. The lawsuit claims these practices violated California's Unfair Competition Law and Consumers Legal Remedies Act.

The complaint specifically details how Pillow Cube's Side Sleeper Ice Cube Pillow was consistently advertised at $134.99 as a sale price from a purported original price of $179.99. Court documents show multiple instances throughout 2023 where this pricing scheme remained unchanged, suggesting the products were "perpetually on sale."

Legal experts monitoring these cases note significant financial implications for companies engaging in such practices. According to Rob Freund, a lawyer specializing in marketing and e-commerce issues, similar lawsuits have resulted in substantial settlements. "A few years ago, Boohoo settled one of these for approximately $200 million. RugsUSA settled one at the beginning of the year for $14 million. Hot Topic just settled one for $12.5 million," Freund stated on social media on December 13.

The lawsuit cites specific California legal requirements regarding reference pricing. Under California Business and Professional Code § 17501, sellers cannot advertise a former price unless it was the actual prevailing market price within three months immediately preceding the advertisement.

The plaintiffs claim they would not have purchased the products had they known the true nature of the pricing. The complaint states that Sara Adra purchased a Pillow Cube Side Sleeper Pro from Amazon.com for $89.99 on August 1, 2023, while Wayne Mitchell bought the Side Sleeper Ice Cube Pillow from pillowcube.com for $134.99 on January 29, 2023.

The lawsuit seeks class action status to represent other consumers who purchased Pillow Cube products at advertised discounts. The plaintiffs are requesting restitution, disgorgement of profits, injunctive relief to stop the practices, and attorney fees.

This legal action reflects increased scrutiny of e-commerce pricing practices. Andrew Lolk, a digital marketing expert, noted on social media that these lawsuits are now impacting direct-to-consumer brands more frequently, not just larger retailers.

The case documentation reveals that Pillow Cube generated approximately $4 million in revenue from product sales in 2022. The company, headquartered in Orem, Utah, markets and distributes its products throughout the United States.

The plaintiffs are represented by Crosner Legal, P.C., with the case filed under docket number 24CV2313 JO BJC. Neither Pillow Cube nor CEO Jay Davis have publicly responded to the allegations as of the filing date.