HARRISBURG, PA — Attorney General Michelle Henry announced the filing of a lawsuit this week against Digital Dream Labs, a company known for its robotics and educational technology products. The lawsuit highlights significant consumer grievances regarding the company’s failure to deliver prepaid orders or provide refunds for its popular in-home companion robots: Vector 2.0, Cozmo 2.0, and the Butter Robot.
According to the suit, Digital Dream Labs received approximately 14,000 orders for these robots between November 2020 and January 2024. However, a substantial number of these orders remain unfulfilled, leaving many consumers without the products they paid for. The company is accused of not only failing to deliver these prepaid items but also of neglecting to communicate delays or offer refunds.
The legal action demands restitution for affected consumers, alongside civil penalties and costs. Furthermore, it seeks to prohibit Digital Dream Labs from accepting prepayments for products within Pennsylvania, aiming to protect future consumers from similar issues. The Attorney General’s office claims that the company, led by CEO Harold Jacob Hanchar, breached Pennsylvania’s Consumer Protection Law by not delivering merchandise as promised, misrepresenting delivery dates, and failing to notify customers of their right to cancel.
Additionally, the lawsuit asserts that Digital Dream Labs’ operations violated the Federal Trade Commission’s guidelines on Mail, Internet, or Telephone Order Sales. Consumers reportedly paid between $147 and $655 per robot, amounting to over $4 million in total sales, yet many were left without their purchases, particularly the Cozmo 2.0 and Butter Robot models.
The lawsuit aims to enforce the Unfair Trade Practices and Consumer Protection Law, seeking an injunction against Digital Dream Labs to prevent further violations. Attorney General Henry emphasized the need to hold the company accountable, stating, “Consumers paid significant costs for these products, never received them, and were left out in the cold when they asked for updates or refunds.”
Victims of these practices are encouraged to file complaints with the Bureau of Consumer Protection. Deputy Attorney General Jaimie L. George filed the lawsuit in Allegheny County.
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