NY AG Secures $350K in Refunds for 1StopBedrooms Customers

Brooklyn furniture retailer ordered to pay penalties and overhaul policies after hundreds of consumer complaints.

Apr. 15, 2026 at 9:07am

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A close-up photograph of a partially disassembled piece of furniture in muted tones of brown and gray, resting on a clean white background, conveying a sense of disappointment and frustration with the product.A damaged furniture piece symbolizes the frustration many Brooklyn consumers faced with late, broken, and undelivered orders from 1StopBedrooms.Brooklyn Today

New York Attorney General Letitia James has ordered Brooklyn furniture retailer 1StopBedrooms to pay up to $350,000 in refunds and penalties after receiving hundreds of complaints from customers who paid for furniture that arrived late, damaged, or never showed up. The settlement requires the company to overhaul its advertising and return policies.

Why it matters

This enforcement action by the New York Attorney General's office aims to hold 1StopBedrooms accountable for deceptive business practices that left many Brooklyn consumers out hundreds of dollars. It also establishes a formal claims process for affected customers to recoup their losses.

The details

Under the settlement, 1StopBedrooms' parent company Payless Furniture, Inc. will pay up to $350,000 in restitution to 289 affected customers, along with $75,000 in penalties and $2,000 in costs. The investigation was sparked by 270 consumer complaints about late deliveries, damaged goods, and the company's strict return policies, including a 15% restocking fee and $2.25 per pound return shipping charge.

  • The Attorney General's office first sued 1StopBedrooms in January 2025.
  • Customers who purchased from 1StopBedrooms between January 15, 2019 and January 15, 2025 have until August 10, 2026 to file a claim for a refund.

The players

Letitia James

The New York Attorney General who secured the settlement with 1StopBedrooms and is overseeing the claims process for affected customers.

Payless Furniture, Inc.

The parent company that operates the 1StopBedrooms furniture retail brand and is required to pay refunds and penalties under the settlement.

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What they’re saying

“No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged.”

— Letitia James, New York Attorney General

“We are making 1StopBedrooms refund the customers it cheated, and I'll keep fighting to stop companies from taking advantage of New Yorkers.”

— Letitia James, New York Attorney General

What’s next

Anyone who purchased from 1StopBedrooms between January 15, 2019 and January 15, 2025 and believes they qualify for a refund should email [email protected] and file a claim by August 10, 2026. Consumers can also call the Attorney General's consumer hotline at 1-800-771-7755 for assistance.

The takeaway

This case highlights the importance of strong consumer protection laws and enforcement actions to hold companies accountable for deceptive business practices that harm local residents. It also demonstrates the power of the Attorney General's office to secure refunds and policy changes to prevent future consumer abuses.