Bed, Bath & Beyond advertised thread counts of 600, 800 and 1,000 on sheet sets, pillowcases, bed skirts, down comforters, duvets and shams, said a federal class-action suit filed in Newark, N.J. But the advertised thread counts were double the actual counts, The New York Post reported.

Thread counts, or the number of threads per square inch of fabric, should be based on the number of vertical and horizontal threads.

The company and one of its suppliers, Synergy Inc., increased the counts on two-ply fabrics, in which yarns are twisted together, a calculation that violates industry standards, the suit alleged.

Union, N.J.-based Bed, Bath & Beyond denied any wrongdoing, but agreed to give customers who bought bedding between August 2000 and Nov. 9, 2007 either a refund, a $10 store gift card or -- for those who can't produce proof of purchase -- a 20 percent discount coupon.

The retail chain agreed also to pay the plaintiff law firms a total of $475,000 and promised to follow the industry standard for thread counts.