A furniture retailer based in Brooklyn has decided to pay up to $350,000 to settle claims that it misled customers regarding refunds. There might be a chance for you to receive some compensation.
New York State Attorney General Letitia James announced this development on Tuesday, following numerous complaints about severe delivery delays, unexpected cancellation fees, and damaged furniture. The retailer is now operating under the name 1StopBedrooms.
As part of the settlement, 1StopBedrooms is expected to repay customers, alongside paying $75,000 in fines and an additional $2,000 to the state. The company is also required to alter its problematic business practices.
“New Yorkers deserve better than to pay a lot for furniture only to have it arrive late or in poor condition,” James remarked in her statement.
She added, “We ask 1StopBedrooms to refund customers who faced illegal cancellation fees or who were waiting months for their orders but had no option to cancel.”
The investigation began after James’ office received 270 complaints from frustrated customers regarding the online furniture store based in Midwood, Brooklyn.
Findings revealed that 1StopBedrooms often advertised furniture as “in stock” while showing shipping times of under 30 days, despite the reality being that deliveries took significantly longer. Moreover, the company failed to display legally required information about customers’ rights to refunds on its website.
Additional issues arose as the retailer did not help customers dealing with damaged, lost, or incorrect deliveries.
Instead of issuing refunds for canceled orders, it imposed a 15% “restocking” fee and a charge of $2.25 per pound for return shipping.
Customers requesting refunds were even told they needed to withdraw complaints with the Better Business Bureau or remove negative reviews online to receive their money back.
The proposed settlement includes over $78,000 in restitution for the 57 consumers who lodged complaints, plus $206,000 for around 200 other eligible consumers.
Eligible consumers are those who purchased furniture from 1StopBedrooms between January 15, 2019, and January 15, 2025, and faced issues such as not receiving a delivery date, being charged a cancellation fee, or receiving damaged or wrong items.
If you think you might be eligible for compensation, it’s important to submit a claim by emailing 1stopbedroomsclaims@ag.ny.gov before the August 10 deadline.
Customers with ongoing issues related to their online orders can reach out to the Attorney General’s Office by calling 1 (800) 771-7755 or by filing a complaint online.
New York state law requires retailers to update customers about any delays and offer revised delivery dates if they can’t deliver furniture, except for custom items, within 30 days of purchase or by the initially promised delivery time.
Additionally, businesses must provide customers with options like full refunds upon cancellation, store credit, or choosing a new delivery date or different furniture.
If a customer chooses to cancel their order, a refund must be processed within two weeks of the request.
