La-Z-Boy and Joybird agreed to a $7.15 million settlement to resolve a class action lawsuit alleging the furniture companies used artificially inflated reference prices and false discount claims to deceive customers. The case, Jacobs v. La Z Boy Incorporated, challenged practices where customers were shown “original” prices that were unrealistically high, making sale prices appear more valuable than they actually were. For example, a recliner marked down from $1,500 to $999 may have never been offered at the $1,500 price point—or if it was, only for an extremely limited time while the company perpetually advertised the inflated price as the baseline.
The settlement makes customers who purchased furniture from either Joybird or La-Z-Boy eligible for compensation of $115 per eligible claim, available as either cash or store credit. Unlike settlements where defendants must admit wrongdoing, La-Z-Boy and Stitch Industries (Joybird’s parent company) denied all claims and wrongdoing but agreed to settle the case to resolve the litigation. This is a common resolution in class actions, where both sides reach a financial agreement without the defendant accepting fault. Qualifying purchases include items bought from December 18, 2019 through October 31, 2025, in California, Oregon, or Washington. Claims must be filed by the settlement deadline, and eligible consumers do not need to keep purchase receipts in all cases, as the settlement administrator can cross-reference verified purchase records.
Table of Contents
- What Were the Pricing Deception Allegations Against Joybird and La-Z-Boy?
- Who Is Eligible for the Settlement and What Are the Geographic Restrictions?
- How Much Compensation Will You Receive From This Settlement?
- How to File Your Claim and What Documentation You Need
- Reference Price Deceptions in Furniture Retail and Why This Settlement Matters
- The Timeline and Current Status of the Settlement
- What This Settlement Means for Furniture Shoppers Going Forward
What Were the Pricing Deception Allegations Against Joybird and La-Z-Boy?
The core allegation in this settlement is that both companies engaged in deceptive pricing practices by displaying inflated reference prices to make discounts appear larger and more valuable than they actually were. During an investigation covering February through May 2024, reviewers found that furniture items were shown to be perpetually “on sale” without ever selling at or near the full reference price. This practice is known as a “reference price fraud” or “fictitious pricing” scheme—a deceptive retail tactic that violates consumer protection laws in most states.
Specific examples of this practice might include an ottoman listed at a $500 “original price” with a $200 sale price, when the ottoman had rarely or never been sold at $500 and the company always intended to sell it at or near the discounted price. Consumers believe they are getting a significant deal, when in reality, they are paying the company’s true intended price. The difference between the inflated reference price and the actual sale price creates a false sense of savings. This distinction matters legally because misleading consumers about the value of their purchase violates unfair competition laws and consumer protection statutes in multiple states.
Who Is Eligible for the Settlement and What Are the Geographic Restrictions?
To qualify for compensation from the Joybird and La-Z-Boy settlement, you must have purchased furniture from either brand in California, Oregon, or Washington between December 18, 2019 and October 31, 2025. The settlement does not cover purchases made in other states or outside this date range, so geography and timing are strict eligibility requirements. If you bought a chair from Joybird’s website while living in Texas, or purchased a La-Z-Boy sofa in Idaho, your purchase would not qualify even if all other factors were present. The settlement applies regardless of whether you bought from Joybird’s stores, La-Z-Boy’s stores, or their websites. However, the geographic restriction is important because California, Oregon, and Washington have strong consumer protection laws with specific prohibitions against reference pricing deceptions.
The lawsuit was filed in California, and the settlement’s geographic scope reflects where the alleged violations occurred and where state law provides the strongest protections. Consumers in other states could potentially file separate claims if similar conduct harmed them, but this particular settlement does not extend to purchases outside the three-state region. one limitation to note is that the settlement period closes on October 31, 2025. Any purchases made after that date are excluded from coverage, which means timing is critical if you’re on the fence about filing a claim. Claims must be submitted by the settlement deadline to be valid.
How Much Compensation Will You Receive From This Settlement?
Each eligible claimant is entitled to $115 per valid purchase claim, which can be received as either cash or store credit. This per-claim amount is a fixed recovery, not a variable payment based on how much you spent or the size of your discount. A person who bought a $300 footstool gets the same $115 as someone who purchased a $3,000 sectional. The formula is straightforward: one claim equals $115, whether you choose cash reimbursement or store credit.
The settlement’s total value of $7.15 million must be divided among all approved claims, attorney fees, and settlement administration costs. This means if tens of thousands of people file claims, the compensation fund will be divided proportionally. However, the settlement agreement guarantees each approved claimant receives their $115 or store credit amount—the settlement fund is structured to ensure each valid claim is honored. The distinction between cash and store credit is important: cash payments are sent directly to claimants, while store credit can only be used for future purchases from Joybird or La-Z-Boy. If you prefer cash, you should request that option rather than defaulting to store credit.
How to File Your Claim and What Documentation You Need
To claim your $115 settlement payment, you must file a claim through the official settlement website at JoybirdSettlement.com or by submitting a written claim form to the settlement administrator. The process requires you to provide information about your purchase, including the date, the items purchased, and the amount you paid. Importantly, the settlement does not require you to provide the original purchase receipt in all cases—the settlement administrator can verify purchases through the company’s records if you provide sufficient details about your transaction. When filing your claim, you will need to indicate whether you want cash reimbursement or store credit. Cash payments are distributed directly to your bank account or via check, while store credit is issued as a voucher or credit applied to your account.
If you are unsure about your purchase details, gather any documentation you have: credit card statements, emails confirming the order, shipping confirmations, or bank records showing the payment. These supporting documents strengthen your claim and reduce the likelihood of delays in processing. A critical practical note is that claim filing deadlines are firm. Once the deadline passes, claims are no longer accepted, and you forfeit your right to compensation. Mark the claim deadline on your calendar and submit your claim well before the cutoff date—do not wait until the last day, as claims submitted after the deadline will be rejected regardless of circumstance.
Reference Price Deceptions in Furniture Retail and Why This Settlement Matters
Reference pricing deceptions are not unique to Joybird and La-Z-Boy. Many furniture retailers, appliance stores, and electronics sellers use the same tactic—displaying inflated original prices to make discounts appear more generous. The FTC (Federal Trade Commission) has repeatedly warned retailers about this practice, and multiple state attorneys general have pursued cases against companies using reference pricing fraud. What distinguishes this settlement is that it successfully challenged one of the furniture industry’s largest players, sending a signal to other retailers that these practices carry legal and financial risk. This settlement matters because it demonstrates that consumers harmed by reference pricing deceptions have legal recourse.
Rather than accepting the marketing claims at face value, courts have recognized that comparing inflated reference prices to sale prices misleads consumers about the true value of their purchase. The $7.15 million settlement fund represents the company’s acknowledgment that compensating affected consumers is necessary to resolve the dispute. For comparison, reference pricing settlements have ranged from millions to tens of millions of dollars depending on the defendant’s size and the scope of violations. One important limitation is that this settlement only applies to the specific companies named and the specific geographic regions listed. Other furniture retailers may engage in similar practices, but this settlement does not address them. Consumers harmed by reference pricing deceptions from other furniture companies would need to pursue separate class actions or file complaints with state attorneys general or the FTC.
The Timeline and Current Status of the Settlement
The Jacobs v. La Z Boy Incorporated case proceeded through the litigation process, and the parties reached a settlement agreement that was submitted for court approval. As with all class action settlements, the agreement required judicial review to ensure it was fair, reasonable, and adequate to class members. Once the court approves the settlement, a notice period begins during which class members are informed of their rights and the deadline for filing claims. The settlement website at JoybirdSettlement.com provides the current status and specific deadline information for claim submissions.
The settlement processing timeline typically includes several months between court approval and the actual distribution of funds. After claims are reviewed and approved, the settlement administrator processes payments and distributes compensation. Claims are prioritized by submission date, and earlier claims may be processed first. If you are planning to file a claim, check the settlement website immediately for the current deadline and any updates about processing status. Delays can occur if the settlement administrator needs to verify information or if there are disputes about claim validity, so filing early provides a buffer against unexpected processing delays.
What This Settlement Means for Furniture Shoppers Going Forward
This settlement sends an important message to furniture retailers that reference pricing deceptions carry real consequences. Companies can no longer assume that displaying inflated original prices is a risk-free marketing tactic. The financial liability associated with this settlement—combined with the FTC’s increased scrutiny of pricing practices—should incentivize retailers to adopt clearer, more honest pricing strategies. However, consumer vigilance remains essential.
Understanding how reference pricing works and comparing actual prices across retailers helps you evaluate whether a deal is truly a good value. Going forward, furniture shoppers should scrutinize advertised discounts more carefully. If a chair is always “40% off,” ask yourself whether the original price is realistic or inflated. Check competitor pricing, look at historical prices if available online, and be skeptical of dramatic discounts that seem too good to be true. The Joybird and La-Z-Boy settlement is a victory for transparency in retail pricing, but individual consumers must still exercise caution when evaluating furniture purchases.
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