Rugs.com $3.5M Advertisement Discount Settlement

If you purchased one or more items from Rugs.com while residing in California or Oregon during specific periods, you may be eligible to claim a portion of a settlement from a class action settlement.

Rugs.com has agreed to pay $3,500,000 to settle a class action lawsuit for allegedly deceptive advertising practices related to discounts on its products.

Who are the class members?

To be part of the settlement class, you:

• Purchased one or more products advertised as discounted on Rugs.com while in California between May 17, 2019, and July 12, 2023.
• Purchased one or more products advertised as discounted on Rugs.com while in Oregon between May 17, 2020, and July 12, 2023.

How much is the payout?

Class members can receive approximately 14.25% of their total qualifying purchases, minus a proportional share of notice and administration costs, attorneys' fees, and incentive awards.

• Cash Benefit: Requires submission of a valid claim form with order numbers.
• Credit Benefit: Automatically provided if no claim form is submitted or if order numbers are missing.

For example, if you made $1,000 in qualifying purchases, you might receive $142.50, less any deductions for costs and fees. The settlement fund will be distributed based on each member's share of the total qualifying purchases.

What documentation is needed?

Claimants must provide order numbers for each qualifying purchase to receive the cash benefit. If order numbers are not provided, the credit benefit will be issued instead.

How to claim an award

To claim an award, you must submit a claim form by December 10, 2024. You can file a claim online or download the PDF claim form and mail it to:

Spilkia v. Rugs.com Settlement Administrator

1650 Arch Street, Suite 2210

Philadelphia, PA 19103

Ensure you include order numbers for qualifying purchases to receive the cash benefit.

Claim instructions

1. Visit the online claim form.
2. Enter your contact information and mailing address.
3. Provide order numbers for each qualifying purchase.
4. Select your preferred payment method.
5. Submit the form by the deadline.

Payment options

• Prepaid Mastercard
• PayPal
• Venmo
• Zelle
• Physical check

$3.5 Million settlement fund

The settlement fund of $3,500,000 will cover:

• Settlement awards to class members.
• Notice and administration costs estimated between $70,000 and $87,500.
• Incentive awards up to $2,500 for each class representative.
• Attorneys' fees up to 20% of the fund, approximately $700,000.

Important dates

• Deadline to File a Claim: December 10, 2024
• Final Approval Hearing: January 16, 2025

When is the Rugs.com settlement payout date?

The court will hold a final approval hearing on January 16, 2025. If approved, the settlement will proceed, and awards will be distributed to class members.

Why was this settlement reached?

The lawsuit alleged that Rugs.com deceptively advertised discounts on its website, violating consumer protection laws in California and Oregon. The settlement avoids the risks and costs of a trial, providing compensation to affected consumers.