A Brooklyn-based furniture retailer has agreed to pay up to $350,000 to settle claims it cheated customers out of refunds – and you may be eligible for a payment.
New York Attorney General Letitia James on Tuesday announced the settlement with Payless Furniture – operating as 1StopBedrooms – after her office received hundreds of complaints for excessive delivery delays and cancellation fees, as well as deliveries of damaged furniture.
Along with restitution for customers, 1StopBedrooms has been ordered to pay $75,000 in penalties and $2,000 to the state, and it must change its harmful business and advertising practices.
“No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged,” James said in a statement.
“We are requiring 1StopBedrooms to refund customers who were forced to pay unlawful cancellation fees or could not cancel their order after it was delayed for months.”
James’ office launched an investigation into the online furniture store – which is headquartered in Midwood, Brooklyn – after receiving 270 complaints from furious customers.
The probe revealed 1StopBedrooms frequently advertised furniture as “in stock” and showed shipping dates of less than 30 days when the actual delivery times were much longer, and its website did not include legally-required notices informing customers of their right to a refund.
The company also failed to help customers with damaged, missing or incorrect deliveries.
Instead of refunding canceled orders, the furniture retailer charged a 15% “restocking” fee and a return shipping charge of $2.25 per pound.
It even told customers requesting refunds that they needed to withdraw their complaints with the Better Business Bureau or delete negative business reviews online before they would be issued a payment.
The settlement requires 1StopBedrooms to pay more than $78,000 in restitution to 57 consumers who filed complaints, as well as $206,000 to roughly 200 other consumers who are eligible for restitution.
Consumers who bought furniture from 1StopBedrooms between Jan. 15, 2019, and Jan. 15, 2025, and did not receive a delivery date at the time of purchase, did not receive a delivery delay notice, were charged cancellation fees or received damaged or incorrect furniture are eligible.
Any consumer who believes they may be eligible for a restitution payment should email 1stopbedroomsclaims@ag.ny.gov to file a claim before the deadline of Aug. 10.
Customers currently experiencing issues with online orders should contact the attorney general’s office by calling 1 (800) 771-7755 or submitting a complaint online.
According to New York state law, retailers are required to notify customers of delays and a revised delivery date if they are unable to deliver furniture – excluding custom-made products – within 30 days of purchase, or by the original delivery date.
They are also required to provide customers the option to cancel the order for a full refund, receive store credit, agree to a new delivery date or choose a new piece of furniture.
For customers who choose to cancel the order, retailers must make the refund within two weeks of the request.
