Attorney General Letitia James has launched a lawsuit against a Brooklyn-based online furniture store, Payless Furniture, Inc., doing business as 1StopBedrooms, for allegedly duping customers through deceptive business practices. The lawsuit, filed yesterday, addresses multiple consumer complaints of overpriced cancellation fees, misleading return policies, and issues surrounding damaged deliveries. In a statement shared by the Attorney General's Office, James is quoted as saying, "Furnishing a home can be expensive, and the last thing families should have to worry about is receiving furniture that is damaged, missing pieces, or excessively late."
Details from the investigation conducted by the Office of the Attorney General (OAG) reflect a scheme where 1StopBedrooms promoted fast shipping and easy returns on their website, but the reality for customers was markedly different. Once purchases were made, consumers often faced substantial delays in delivery and were charged a 15 percent restocking fee accompanied by a $2.25/lb. return shipping fee in the event of a cancellation. The misleading conduct included inflating additional fees on missing pieces ,after customers had already made purchases. According to the Attorney General's Office, customers facing these delays were not refunded shipping costs on their canceled orders, and some didn’t receive refunds at all.
1StopBedrooms, located in the Midwood neighborhood of Brooklyn, also finds itself accused of mishandling reports of damaged, incorrect, or incomplete deliveries. The company stipulates that customers must report damaged goods within 24 hours to be eligible for a refund, but failed to reply to, or resolve, such complaints adequately. James expresses her office’s commitment to stopping this fraudulent activity and obtaining both restitution for affected customers and civil penalties against the company. Attorney General James encourages those who have been deceived to come forward and contact her office.
The lawsuit aims to prohibit 1StopBedrooms from continuing these alleged deceptive practices and seizes upon a history of consumer protection actions undertaken by James's office. Previous efforts include obtaining $4.8 million in December 2024 for customers impacted by the bankruptcy of SmileDirectClub and disrupting a scheme by SiriusXM to lock customers into unwarranted subscriptions. The matter is currently being managed by Assistant Attorney General George Forbes, under the guidance of Michael Barbosa, who oversees the Brooklyn Regional Office. Consumers are advised to file an online complaint or call 1-800-771-7755 if they believe to have fallen victim to similar scams.
