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New York AG sues online furniture retailer over alleged consumer fraud

The New York Attorney General has initiated legal action against an online furniture retailer accused of deceptive practices affecting hundreds of customers. The lawsuit alleges the company imposed "exorbitant" cancellation fees, failed to honour its 30-day "hassle-free" return policy, and denied refunds or exchanges for damaged items.


Photo: Dreamstime.

The retailer, Payless Furniture, operating as 1StopBedrooms, is at the centre of the claims. The Attorney General is pursuing an injunction, restitution for affected customers, and civil penalties.

Attorney General Letitia James stated, 'My office received hundreds of complaints against 1StopBedrooms for cheating New Yorkers, and today we are taking action to stop this fraud and help consumers get back what they are owed.' Reports suggest the retailer has been the subject of over 2,400 complaints to the Better Business Bureau in the past three years.

The lawsuit alleges misleading advertising of in-stock items with short delivery times, followed by significant delays post-purchase. Customers cancelling delayed orders were reportedly charged a 15% "restocking" fee and $2.25 per pound for return shipping. Refunds often excluded delivery charges, with some customers receiving only partial refunds or none at all.

Additionally, the retailer is accused of charging unexpected fees, claiming components were missing from the quoted price after purchases were made.

In response, 1StopBedrooms denied the allegations, describing them as "old claims" previously addressed and resolved. The company criticised the Attorney General for reviving these issues without prior dialogue.

Source: www.furnituretoday.com

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