SHAKOPEE, Minn. (KMSP) - The Better Business Bureau yanked accreditation from Minnesota-based MyPillow and announced on Monday that the company's "A+" plummeted to an "F" due to its continuous BOGO offers and ads.
On Tuesday, CEO Mike Lindell spoke out and stood by his offers, although he said new ads will air by the end of the month.
Lindell believes these new ads will clear up customers' confusion over the difference between the "classic" pillow offered in stores and "premium" pillows only offered by phone and online.
"It's an 'A+' to an 'F.' It's very disappointing," said Lindell.
The MyPillow founder freely shared his displeasure with the BBB's report card with FOX 9, but sets his sights on the bigger picture.
"I have 1500 employees, we've sold over 25 million pillows, and they have 235 complaints," said Lindell in contrast.
The Senior Vice President of the BBB of Minnesota & North Dakota, Barb Grieman, said MyPillow's continuous offer violates its code of advertising and Federal Trade Commission rules.
"And it still remains an offer on the company's website," Grieman said.
Consumers' top complaint involves confusion over Lindell's commercial offers and the pillows available in stores.
"I was expecting to spend $50 and get two pillows. Instead, I spent $117 and got two pillows," said Dan Lee, an unsatisfied customer from Faribault, Minnesota.
"I don't know why [it was] $117," Lindell responded. "They're $89 online; that's our premium pillow which has five different loft levels. There's more fill in that [and] we custom fit you."
Although Lindell seemed slightly confused himself he now maintains the BOGO offer is "going away" and was scheduled to do so back in August.
The CEO does, however, stand by both his 60-day and 10-year warranties. While the BBB claims MyPillow does not offer customers full refunds and makes them pay for product returns, Lindell denies the allegation.
"If you get the wrong size, I pay to have it shipped back to me and I give you a new one," Lindell said.
With "less confusing" replacement ads on air by the end of the month, Lindell hopes complaints to the BBB will decrease.
"People know me enough. They know my integrity, they know my honesty, especially here in Minnesota," he said.
Yet, Minnesota now knows his business is not immune to a failing grade in the realm of accredited businesses.
"If it hurts me, there's nothing I can do. I just pray to God we get through it," Lindell said.
This isn't the first time Lindell has been taken to task for "confusing, false or deceptive" offers.
The State of California has filed suit against Lindell for making unsubstantiated health claims. The suit has since been settled.
Lindell confirmed that his MyPillow product is not a medical device and added that his customers are always top priority.