Closet World False-Ad Suit Advances Over Organizer Prices

Closet World Inc. and Home Organizers Inc. failed to shake off a proposed class suit alleging they entice customers with fake sale prices on home storage systems.

Sarkhan Nabiyev and his mother, Sevinj Mirzatagi, raised viable consumer protection law and breach-of-warranty claims challenging the supposed discounts, the US District Court for the Central District of California said.

They adequately alleged they suffered harm from relying on the companies’ promotions, giving them standing to sue, the court said in an order entered Thursday.

Courts have come to different conclusions on the standing question in litigation alleging other retailers use bogus discount ...