1StopBedrooms Online Furniture Store Sued for Fraud By New York State Attorney General

Unsplash | Published: March 19, 2025

Claim Form Deadline: Pending

Payout: Pending

New York's top law enforcer, Attorney General Letitia James's office, has filed a lawsuit against 1StopBedrooms for allegedly defrauding customers through various deceptive practices. 1StopBedrooms.com, also known as Payless Furniture, is one of the largest online furniture retailers in the United States, based out of Brooklyn, New York.

According to the New York State Attorney's lawsuit, 1StopBedrooms.com allegedly engaged in fraudulent, deceptive, and illegal business practices, including misleading promises of fast shipping, false guarantees of hassle-free returns, false advertisements of furniture being in stock, attempts to add charges after purchase, extensive delivery delays, exorbitantly high return fees, delivery of damaged or incorrect furniture, and demands to remove complaints to receive refunds. 1StopBedrooms.com also allegedly threatened customers with legal action to remove negative reviews.

The New York Attorney General is seeking to permanently enjoin 1StopBedrooms from these practices, provide restitution to affected consumers, and require the company to pay civil penalties and costs. Similar cases settled or won by the NY AG include actions against companies for deceptive advertising, fraudulent business practices, and violations of consumer protection laws, resulting in restitution for consumers, fines, and changes in business practices.

What is the Total Settlement Amount?

If the court rules in favor of the Attorney General, affected consumers may be able to receive payouts as part of the restitution ordered by the court.

What is Next for the 1StopBedrooms Lawsuit?

The next steps for this case involve court proceedings where the Attorney General will present evidence and arguments to support the claims against 1StopBedrooms. The court will then decide whether to grant the relief requested, including injunctions, restitution, and penalties. The complaint and expected response from 1StopBedrooms and Payless Furniture will be heard by the Supreme Court of the State of New York.

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How Much Can I Get Paid?

The Attorney General is seeking restitution for all affected consumers, which could potentially involve a process similar to a class action where multiple consumers receive compensation. This might be similar to the New York AG's SmileDirectPlan's compensation of $4.8 million for over 28,000 consumers.

What Other Similar Cases Were Settled or Won in Court?

In December 2024, the NY State Attorney won a lawsuit action against SmileDirectClub, recovering a staggering $4.8 million for over 28,000 consumers who were unjustly charged after the company's abrupt shutdown. The settlement also required SmileDirectClub to pay $1.5 million in civil penalties and costs.

Just a month earlier, in November 2024, she confronted SiriusXM, putting an end to the company's manipulative tactics that trapped unsuspecting New Yorkers in unwanted subscriptions. The intervention brought relief to Sirius satellite radio subscribers who had been ensnared by these deceptive practices.

In June 2024, Attorney General James secured over $350,000 from two Long Island Nissan dealerships that had been overcharging more than 200 New Yorkers at the end of their lease terms. This action was part of a broader crackdown that reclaimed more than $2.25 million from seven Nissan dealers, rectifying the injustices faced by hundreds of consumers.

In October 2022, the New York State Attorney General's office held a cookware company accountable for misleading consumers about their refund policy, securing $300,000 in restitution on behalf of consumers.

References:

[1] AG of NY v. 1StopBedrooms.com, Inc., et al., Index No. 451-2025 (Sup. Ct. N.Y. County 2025)

Filing Class Action Settlement Claims

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