New York Attorney General Letitia James announced on Apr. 14 that her office secured up to $350,000 from Payless Furniture, Inc., doing business as 1StopBedrooms, a Brooklyn-based furniture retailer, following hundreds of consumer complaints about delivery delays and unfair fees.
The action addresses concerns over deceptive business practices affecting New Yorkers who purchased furniture online. Many consumers reported late deliveries, high cancellation fees, misleading return policies, and damaged goods without proper refunds or exchanges.
“No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged,” said Attorney General James. “We are requiring 1StopBedrooms to refund customers who were forced to pay unlawful cancelation fees or could not cancel their order after it was delayed for months. As New Yorkers struggle with the rising cost of living, my office will continue to fight back against companies that try to take advantage of consumers.”
According to the Office of the Attorney General (OAG), its investigation began after receiving 270 complaints against 1StopBedrooms related to misleading shipping dates and failure to provide legally required notices regarding refunds when deliveries were delayed. The company also charged a “restocking” fee and shipping charges on canceled orders and sometimes provided only partial or no refunds at all. Additionally, some customers were told they had just 24 hours to report damage in order to qualify for a refund and were asked by the company to withdraw complaints filed with review platforms in exchange for restitution.
Under the settlement terms, the company must pay $78,810.71 in restitution directly to consumers who filed complaints with OAG or the Better Business Bureau and an additional $206,115.37 is set aside for other eligible consumers impacted by these practices between January 15, 2019 and January 15, 2025.
New York law requires sellers unable to deliver non-custom-made furniture within promised timeframes either provide notice of delay along with options including contract cancellation with full refund within two weeks upon request.
The Office of the Attorney General promotes social justice and community well-being through civil rights enforcement and consumer advocacy according to its official website. It also protects New Yorkers’ rights across areas such as public safety and environmental preservation according to its official website. Letitia James heads this agency according to its official website, which operates regional offices statewide addressing local legal issues according to its official website.
Consumers who believe they may be eligible for restitution are encouraged by OAG officials—who provide services including fraud investigations—to file claims before August 10 by emailing their office.According to the official website, the agency serves as New York’s public law enforcement body providing legal advocacy.
