A Brooklyn-based online furniture retailer will pay up to $350,000 in restitution and penalties after a state investigation found widespread consumer complaints tied to delayed deliveries, misleading policies and damaged goods.
New York State Attorney General Letitia James announced the settlement with Payless Furniture, Inc., which operated as 1StopBedrooms, following what her office described as hundreds of consumer complaints over several years.
The Office of the Attorney General (OAG) launched its investigation after receiving 270 complaints from customers who reported excessive delivery delays, high cancellation fees and difficulty obtaining refunds. Many customers also reported receiving damaged or incorrect furniture without proper resolution.
“No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged,” said Attorney General James. “We are requiring 1StopBedrooms to refund customers who were forced to pay unlawful cancelation fees or could not cancel their order after it was delayed for months. As New Yorkers struggle with the rising cost of living, my office will continue to fight back against companies that try to take advantage of consumers.”
According to the OAG, 1StopBedrooms advertised items as “in stock” with delivery timelines as short as 30 days, even when actual shipping dates were significantly longer. Investigators also found that the company failed to notify customers of delays or of their legal right to cancel late orders and receive full refunds.
The state further alleged the retailer imposed a 15 percent “restocking” fee along with return shipping costs of $2.25 per pound on canceled or delayed orders. Some customers only received partial refunds, while others received none at all.
Complaints also detailed issues with damaged deliveries. While the company advertised a 24-hour window to report damage, the OAG found 1StopBedrooms “failed to adequately repair damaged furniture, or respond to consumer complaints.” In some cases, customers were told they needed to withdraw complaints filed with the Better Business Bureau ot other platforms to receive refunds.
Under the settlement, 1StopBedrooms will pay $78,810.71 to 57 consumers who previously filed complaints. An additional $206,115.37 will be set aside for 232 eligible consumers who experienced delivery issues, improper fees or defective merchandise. The company must also pay $75,000 in penalties and $2,000 in costs to the state and review its business practices and advertising.
State law requires furniture sellers to notify customers of delays and provide options that include canceling for a full refund, accepting a revised delivery date or selecting a different item. If a refund is requested, it must be issued within two weeks.
Consumers who purchased furniture from 1StopBedrooms between Jan. 15, 2019, and Jan. 15, 2025, may be eligible for restitution. Claims must be submitted by Aug. 10, 2026, by emailing 1stopbedroomsclaims@ag.ny.gov
