According to the Federal Trade Commission (FTC), the mattress company DreamCloud assured its customers that the mattresses they were purchasing were made in the USA. But, it turns out, this was a false claim (1). Now, the FTC is issuing refunds to anyone who purchased a DreamCloud mattress under the false pretense that the product was manufactured in the USA (2).
Here, we’ll go through everything you need to know about the claims DreamCloud made, how the FTC dealt with the issue, and what you need to know about getting a refund if you were an affected customer.
What False Claims Did DreamCloud Make?
DreamCloud mattresses are sold by Resident Home LLC, which is the parent company of Nectar Mattresses. As the FTC describes it, Resident Home LLC previously advertised that their DreamCloud mattresses were “assembled in USA.”
In 2018, Resident Home LLC owner Ran Reske, under penalty of perjury, told the FTC that his company had never made incorrect claims about where its mattresses were manufactured. This was proven to be false, though, and in 2021, the company was ordered to pay $753,000 as a result of these falsified claims.
As the FTC notes, in DreamCloud’s advertising materials, they stated that their mattresses were “proudly made with 100 percent USA-made premium quality materials.” In fact, DreamClouds mattresses were all finished outside of the USA. Often, the mattresses were manufactured with imported materials. Some mattresses were made with 100 percent imported materials.
“The importance of a case like this lies in the protection of consumer rights and maintaining the integrity of marketing claims,” Min Hwan Ahn, a lawyer at EZ485 in Jenkintown, PA. “When a company falsely claims that its products were made in the USA, it not only misleads consumers but also undermines the trust that consumers place in such labels.”
What “Made In The USA” Means
Consumers choose products based on their origin for various reasons, says Ahn, including supporting local industries or expecting certain quality standards based. “Therefore, misleading claims can lead to a breach of trust and potential financial loss for consumers,” he says.
Even if DreamCloud’s mattresses had some materials that were made in the USA, the way the mattresses were advertised violated FTC’s standards for what it means to claim that a product is made in the USA. “The FTC enforces these standards to ensure that consumers are not misled by such claims,” Ahn says.
As Ahn explains it, in order for a company to rightly claim that its product was made in the USA, it must meet certain standards:
- All, or virtually all of the product must be made in the U.S
- This includes significant parts, processing, and labor
- The product should contain only a negligible amount of foreign content
“Cases like this one prove the importance of the FTC,” says Ben Michael, lawyer at Michael & Associates in Austin, Texas. “The FTC exists to protect customers by enforcing fairness and transparency, and DreamCloud’s claims clearly violated that.”
What This Means for DreamCloud Customers
Anyone who purchased a DreamCloud mattress under the pretense that the mattress was “made in the USA” is eligible for a refund from the FTC. The FTC has already begun notifying people who may be eligible for this refund via email or snail mail. If you were notified that you might be eligible, you can apply for a refund.
How large might that refund be? The FTC has not shared that information yet, but says that it depends partially on how many people apply for a refund. The FTC also hasn’t settled on a date yet to send out the refunds. If you are eligible and want to apply, you can go to https://secure.DreamCloudRefund.com. Just make sure you apply for your claim by the October 2024 deadline.
“When big cases like these happen, the payouts to individual customers aren’t always very big, but in my opinion they are always worthwhile submitting a claim for if you’re eligible,” Michael advises.
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Sources
Ahn, Min Hwan. Author interview. August 2024.
Michael, Ben. Author interview. August 2024.
- Federal Trade Commission, “FTC Orders “Made in USA” Repeat Offender to Pay Funds,” https://www.ftc.gov/news-events/news/press-releases/2021/10/ftc-orders-made-usa-repeat-offender-pay-funds. October 6, 2021.
2. Federal Trade Commission, “FTC Sends Payments to Consumers Deceived by False ‘Made in USA’ Claims for DreamCloud Mattresses,” https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-sends-payments-consumers-deceived-false-made-usa-claims-dreamcloud-mattresses. March 30, 2024.
