1StopBedrooms Pays $350,000 Consumer Fraud Settlement

Attorney General James Secures $350,000 From Brooklyn Furniture Store for Cheating Consumers

1StopBedrooms Will Refund Consumers Who Experienced Excessive Delivery Delays, Were Charged Improper Cancelation Fees, or Received Damaged Furniture

April 14, 2026

NEW YORK – New York Attorney General Letitia James today announced she secured up to $350,000 from Payless Furniture, Inc. d/b/a 1StopBedrooms, a Brooklyn-based furniture store, for cheating consumers. The Office of the Attorney General (OAG) received hundreds of complaints from consumers against 1StopBedrooms for excessive delivery delays, exorbitant cancelation fees, falsely promoting 30-day “hassle-free” returns, and delivery of damaged furniture with no opportunity for a full refund or exchange. As a result of OAG’s investigation, 1StopBedrooms is required to pay restitution to consumers who experienced these issues, in addition to $75,000 in penalties and $2,000 in costs to New York state. 1StopBedrooms will also be required to change its advertising and business practices to protect future consumers.

“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.”

1StopBedrooms is an online furniture store headquartered in Midwood, Brooklyn. The OAG opened an investigation after receiving 270 complaints from consumers detailing issues with deliveries and returns. The OAG’s investigation revealed that 1StopBedrooms advertised furniture on its online store as “in stock” and displayed quick shipping dates, sometimes within 30 days, when the actual delivery dates were in fact much later. 1StopBedrooms did not provide consumers with the legally required notices to inform them of their right to a full refund due to delivery delays.

The investigation further revealed that 1StopBedrooms failed to refund consumers for fees when orders were canceled and charged consumers a 15 percent “restocking” fee plus a return shipping fee of $2.25 per pound on canceled orders or orders that were excessively delayed. Several consumers only received partial refunds, and others did not receive any refunds on canceled orders.

1StopBedrooms also failed to correct orders or help consumers when they received damaged, missing, or incorrect furniture deliveries. The store’s refund policy advertised that consumers had only 24 hours to report damaged furniture to receive a refund. However, 1StopBedrooms failed to adequately repair damaged furniture or respond to consumer complaints. The store also told consumers that they had to withdraw their complaints with the Better Business Bureau or other online review platforms in order to receive a refund.

The settlement with OAG requires 1StopBedrooms to pay $78,810.71 in restitution to 57 consumers who filed complaints with OAG or the Better Business Bureau against 1StopBedrooms. The settlement further requires 1StopBedrooms to pay an additional $206,115.37 to 232 consumers who are eligible for restitution, including those who did not receive a delivery date at the time of purchase or a delivery delay notice, received unwarranted cancelation charges, or received defective or incorrect furniture.

Under New York law, if a seller is unable to deliver non-custom-made furniture by the delivery date or within 30 days of purchase, the company must notify the customer of the delay and any revised delivery dates, and must provide the option to:

• Cancel the contract and receive a full refund;
• Cancel the contract and receive a credit for any deposit;
• Agree to a new delivery date or range of delivery dates; or
• Select a different piece of furniture. If a customer chooses to cancel the contract and receive a refund, the seller must make the refund within two weeks of the request.

Any consumer who purchased furniture from 1StopBedrooms between January 15, 2019 and January 15, 2025 who believes they may be eligible for restitution is encouraged to email 1stopbedroomsclaims@ag.ny.gov to file a claim before the deadline of August 10, 2026. Attorney General James urges any consumer who experiences issues with online orders or deliveries to contact OAG by calling 1 (800) 771-7755, or submitting a complaint online.

Attorney General James is a leader in protecting New York consumers. In August 2025, Attorney General James secured refunds for Aneva Gym members who could not easily cancel their membership. In May 2025, Attorney General James secured $600,000 from Equinox for failing to clearly disclose its subscription terms and making it hard for New Yorkers to cancel their memberships. In December 2024, Attorney General James recovered $4.8 million for more than 28,000 customers who were improperly charged by SmileDirectClub after it went bankrupt and stopped providing services. In June 2024, Attorney General James secured more than $350,000 from two Long Island Nissan dealerships for overcharging more than 200 New Yorkers who wanted to purchase their leased vehicles at the end of their lease term.

This matter was handled by Assistant Attorney General George Forbes, with support from Senior Consumer Frauds Representative Shonnese Coleman, Legal Assistant Zubaida Mir, and Investigators Crystal John and Lorenzo Hernandez, under the supervision of Assistant Attorney General in Charge of the Brooklyn Regional Office Michael Barbosa. The Brooklyn Regional Office is part of the Division of Regional Affairs, which is led by Chief Deputy Attorney General Jill Faber and overseen by First Deputy Attorney General Jennifer Levy.