Dow settles with furniture retailer

Nick Rees May 12, 2010, 3:00pm


NEWARK, N.J. (Legal Newsline) - A Monmouth County furniture retailer will pay up to $216,938 in civil penalties to the state of New Jersey following a settlement with state Attorney General Paula Dow.

Spectrum Home Furnishings, Inc., and Charles Serouya & Son, Inc., also known as Gallery, CS&S, INC., and Charles Serouya, Inc., agreed, under terms of the settlement, to resolve existing and future consumer complaints, revise their business practices and pay the $216,938 in penalties and reimbursements to the state.

The companies, which are all owned by Charles Serouya, are alleged to have violated the state's Consumer Fraud Act and related regulations through their delivery of defective or non-conforming merchandise. The company is also alleged to have failed to provide consumers with refunds for the merchandise.

The defendants agreed to pay $104,657 in civil penalties and reimbursements to the state. The remaining $112,281, which represents civil penalties, is suspended and will be automatically vacated at the end of 18 months if the defendants comply with terms of a final consent judgment. The defendants made no admission of liability or wrongdoing in entering into the settlement.

"This settlement addresses all existing consumer complaints and requires the defendants to resolve any future complaints through binding arbitration," Dow said. "The defendants agreed to revise their business practices to be in compliance with our consumer protection laws and regulations."

Under terms of the settlement, the companies agreed to not accept payment for merchandise and then fail to deliver it to a consumer, fail to deliver on the promised date or not at all, or deliver merchandise that is of a different quality or condition from the merchandise ordered.

The companies will, among other things, also not advertise or offer merchandise for sale and then deliver merchandise of a different or inferior quality or condition. In any advertisements for merchandise accompanied by a picture of assembled merchandise that is sold unassembled, the defendants will indicate that it is sold unassembled.

More News