MyPillow agreed to pay $995,000 in civil penalties and $100,000 in contributions to California charities that offer sleeping accommodations to victims of domestic violence and the homeless, such as Community Action Partnership of Sonoma County. MyPillow is now barred from making claims in California that their pillows can treat or cure diseases and their symptoms without a human trial to back up the claims.
In the past, the company’s testimonials have claimed their products can ease symptoms of everything from cerebral palsy to acid reflux to menopause.
The district attorneys’ offices were able to bring the case because the company markets and sells its products in California.
My Pillow advertises aggressively — in an interview with the Boston Herald in May , founder Mike Lindell estimated the company spends $1.4 million on advertising per week, and has sold more than 18 million pillows.
In a separate class action lawsuit recently settled in San Bernardino Superior Court, MyPillow agreed to pay $5.00 per household to MyPillow purchasers who submit a claim form.
Lindell describes his founding of My Pillow as a story of redemption following a period of addiction to crack cocaine that once kept him awake for 19 days straight , he has said.
But the company has faced a barrage of legal challenges for years, including a lawsuit from early investors alleging they owned a share of MyPillow, a $550,000 breach of contract suit resulting from a convoluted case in which an employee’s personal credit card was allegedly charged $125,000, and a tax evasion case with the state of New York settled for $1.1 million . The company did not respond to a request for comment.
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Source: www.sfgate.com
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