A Brooklyn furniture retailer has agreed to pay up to $350,000 to settle claims that it scammed customers out of refunds — and you may be eligible for a payment.
New York Attorney General Letitia James made the announcement on Tuesday Settlement with Payless Furniture — operating as 1StopBedrooms — after her office received hundreds of complaints about excessive delivery delays and cancellation fees, as well as damaged furniture deliveries.
Along with restitution to customers, 1StopBedrooms was ordered to pay $75,000 in fines and $2,000 to the state, and must change its harmful business and advertising practices.
“No New Yorker should pay hundreds of dollars for furniture and then receive it late or damaged,” James said in a statement.
“We are calling on 1StopBedrooms to refund customers who were forced to pay illegal cancellation fees or were unable to cancel their orders after they were delayed for several months.”
James’ office launched an investigation into the online furniture store — which is headquartered in Midwood, Brooklyn — after receiving 270 complaints from angry customers.
The investigation revealed that 1StopBedrooms repeatedly advertised furniture as “in stock” and showed shipping dates of less than 30 days when 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 assist customers with damaged, lost, or incorrect deliveries.
Instead of refunding canceled orders, the furniture retailer charged a 15% “restocking” fee and a return shipping fee 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 online business reviews before they would be issued a payment.
The settlement requires 1StopBedrooms to pay more than $78,000 in compensation to 57 consumers who filed complaints, as well as $206,000 to about 200 other consumers who qualify for compensation.
Consumers who purchased furniture from 1StopBedrooms between January 15, 2019 and January 15, 2025, did not receive a delivery date at the time of purchase, did not receive notice of a delayed delivery, were charged a cancellation fee or received damaged or incorrect furniture are eligible.
Any consumer who believes they may be eligible for a recovery payment should email 1stopbedroomsclaims@ag.ny.gov to file a claim before the August 10 deadline.
Customers who are currently experiencing issues with online orders should contact the Attorney General’s Office by calling 1 (800) 771-7755 or filing a complaint online.
According to New York State law, retailers must notify customers of the delay and revised delivery date if they cannot deliver the furniture – except for custom-made products – within 30 days of purchase, or by the original delivery date.
They must also provide customers with the option to cancel the order and receive 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 an order, retailers must refund the money within two weeks of the order.