Full Breakdown
New York Attorney General Secures $350,000 Settlement from 1StopBedrooms for Consumer Fraud
4/16/2026, 10:35:12 PM
Overview of the Settlement
New York Attorney General Letitia James announced a settlement requiring Brooklyn-based furniture retailer Payless Furniture, operating as 1StopBedrooms, to pay up to $350,000 to resolve claims of consumer fraud. The settlement follows an investigation prompted by over 270 complaints regarding excessive delivery delays, misleading cancellation fees, and the delivery of damaged furniture. As part of the agreement, 1StopBedrooms will pay $75,000 in penalties and $2,000 to the state, while also being mandated to amend its business practices.
Consumer Complaints and Investigation Findings
The investigation revealed that 1StopBedrooms frequently advertised furniture as "in stock" with delivery dates of less than 30 days, despite actual delivery times being significantly longer. Customers reported that the company failed to provide legally required notifications regarding their right to refunds for delayed deliveries. Additionally, 1StopBedrooms charged a 15% "restocking" fee and a return shipping charge of $2.25 per pound for canceled orders, often denying refunds altogether. Some customers were told they needed to withdraw complaints from the Better Business Bureau or remove negative online reviews to receive refunds.
Restitution for Affected Consumers
The settlement stipulates that 1StopBedrooms must provide restitution to consumers who experienced these issues. Specifically, the company is required to pay $78,810.71 to 57 consumers who filed complaints with the Attorney General's Office, as well as an additional $206,115 to approximately 200 other eligible consumers. Those who purchased furniture from 1StopBedrooms between January 15, 2019, and January 15, 2025, and faced delivery delays, unwarranted cancellation charges, or received defective items may be eligible for restitution.
Legal Obligations Under New York Law
Under New York state law, retailers must notify customers of any delays and provide revised delivery dates if they cannot deliver non-custom-made furniture within 30 days of purchase. Customers must also be given the option to cancel their orders for a full refund, receive store credit, or agree to a new delivery date. If a customer opts to cancel, the retailer is required to issue a refund within two weeks of the request.
Official Statements & Responses
Letitia James emphasized the importance of consumer protection, stating, “No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged.” She urged consumers experiencing issues with online orders to contact her office for assistance.
What's Next for Consumers
Consumers who believe they may be eligible for restitution are encouraged to file a claim by emailing 1stopbedroomsclaims@ag.ny.gov before the deadline of August 10, 2026. Those currently facing issues with their orders can reach out to the Attorney General's Office at 1 (800) 771-7755 or submit a complaint online.
Verbatim Quotes
- “No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged,” — Letitia James, New York Attorney General
- “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.” — Letitia James, New York Attorney General
