Midwood-based furniture store 1StopBedrooms sued by AG James over alleged consumer fraud

New York Attorney General Letitia James filed a lawsuit last week accusing a Midwood-based online furniture retailer of deceptive practices that defrauded hundreds of consumers.

The lawsuit against Payless Furniture, Inc., operating as 1StopBedrooms, alleges the retailer charged exorbitant cancellation fees, falsely promoted “hassle-free” 30-day returns, and failed to provide refunds or exchanges for damaged products.

The Office of the Attorney General (OAG)  said it launched the legal action on Jan. 16 after receiving hundreds of complaints from disgruntled customers, and is now seeking an injunction to stop 1StopBedrooms from continuing the alleged practices, restitution for affected consumers, and civil penalties.

“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,” James said in a statement. “My office received hundreds of complaints against 1StopBedrooms for cheating New Yorkers, and today, we are taking action to stop this fraud and help consumers get back what they are owed. Businesses have a responsibility to honor the promises they make to consumers, and when they do not, my office will step in to protect hardworking New Yorkers. I encourage all New Yorkers to contact my office if they believe they’re being taken advantage of or scammed.”

According to the OAG investigation, 1StopBedrooms, headquartered in Midwood, advertised products in stock with short shipping times on its website. However, many customers reported experiencing significant delivery delays.

When some customers attempted to cancel delayed orders, the store allegedly imposed a 15 % “restocking” fee and a $2.25 per pound return shipping fee. Delivery fees were also reportedly not refunded, and some customers received only partial refunds or none at all.

The OAG claims its investigation also uncovered that 1StopBedrooms often contacted customers after purchases, claiming additional charges were required for critical furniture components. Complaints also claimed that damaged, missing, or incorrect furniture deliveries were common, with the company allegedly failing to offer adequate repairs or replacements.

Although the store claimed customers could report damaged furniture within 24 hours for a refund, the OAG investigation says that 1StopBedrooms frequently failed to resolve such complaints. Additionally, the company allegedly pressured customers to withdraw complaints filed with the Better Business Bureau or online review platforms in exchange for refunds.

Over 2,380 complaints have been made against 1StopBedrooms on the Better Business Bureau’s website.

1StopBedrooms did not return Brooklyn Paper’s request for comment at the time of publication, but previously told News12 that the allegation in the lawsuit are “baseless.”

James urged consumers who believe they have been deceived by the retailer or other businesses to contact her office by filing an online complaint or calling 1-800-771-7755.