New York Attorney General Letitia James has initiated legal action against Payless Furniture, Inc., operating as 1StopBedrooms, a Brooklyn-based furniture retailer. The lawsuit follows an investigation by the Office of the Attorney General (OAG), prompted by numerous consumer complaints alleging unfair practices by the store.
The investigation revealed that 1StopBedrooms imposed hefty cancellation fees, falsely advertised a "hassle-free" 30-day return policy, and delivered damaged goods without offering refunds or exchanges. The lawsuit seeks to halt these practices, secure restitution for affected consumers, and impose civil penalties.
Attorney General James emphasized the importance of businesses fulfilling their promises to consumers: “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,” she stated. She encouraged New Yorkers who feel exploited to reach out to her office.
The OAG's findings indicate that 1StopBedrooms misrepresented stock availability and delivery timelines on its website. Customers faced additional charges such as a 15 percent restocking fee and a $2.25 per pound return shipping fee when canceling delayed orders. Refunds for delivery fees were often withheld or only partially issued.
Furthermore, customers reported being charged extra fees for essential components supposedly not included in their purchase price. Complaints also noted inadequate responses from the store regarding damaged or incorrect deliveries, with some refunds contingent upon withdrawing complaints from review platforms like the Better Business Bureau.
Attorney General James's office has previously acted against other companies for consumer protection violations. Her efforts include recovering $4.8 million from SmileDirectClub in December 2024 after it went bankrupt and ceased services without refunding customers. Other actions include resolving disputes with SiriusXM over unwanted subscriptions and securing settlements from Nissan dealerships for overcharging consumers.
This case is managed by Assistant Attorney General George Forbes under Michael Barbosa's supervision at the Brooklyn Regional Office. Jill Faber leads the Division of Regional Affairs, with oversight by First Deputy Attorney General Jennifer Levy.