New York court orders furniture chain to pay more than $ 2 million in damages, after NYC sues for false advertising – media, telecommunications, IT, entertainment
United States: New York court orders furniture chain to pay more than $ 2 million in damages, after NYC sues for false publicity
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A New York court ordered Maddy’s Home Furniture and More, LLC to pay more than $ 2 million in penalties and restitution, after the New York City Department of Consumer and Worker Protection sued the furniture chain, alleging the company had lured consumers to its stores with deceptive fundraising offers.
The DCWP sued the company in 2018 – which operates Maddy’s Home Furniture, Dubai Furniture, Furniture Saving, Burnside Furniture, La Reina Furniture and El Rey Furniture – after the agency received numerous complaints from consumers. The lawsuit alleged more than 3,900 violations of New York law Consumer Protection Law. In the lawsuit, DCWP alleged that even though Maddy had made statements such as “24 MONTHS ZERO INTEREST – NO CREDIT CHECKS” and “NO CREDIT?” BAD CREDIT? NO PROBLEM YOU ARE APPROVED ”, several consumers were unable to take advantage of these offers. DCA alleged the allegations were made on Maddy’s website, social media and other channels. DCA also alleged that Maddy delivered used or damaged furniture and delayed delivery of the furniture for months, despite promises of prompt delivery.
The New York County Supreme Court ordered Maddy’s and its affiliates to pay $ 250,000 to a consumer restitution fund to be administered by the DCWP and $ 1,963,500 in civil penalties.
As part of the decision’s announcement last week, DCWP Commissioner Lorelei Salas said: “Buying furniture is not a small investment – in fact, American consumers spend around $ 100 billion. dollars every year in furniture stores. We are pleased that the judge recognized Maddy’s blatant conduct. and ordered them to establish a consumer restitution fund for the hundreds of consumers harmed by their predatory practices. “(The latest one Salas day as commissioner was April 30.)
This case is a great reminder to businesses operating in New York that in addition to federal and state law, they are also required to comply with New York’s own consumer protection law. And, whether you operate in New York or not, this case also highlights the fact that the civil penalties a marketer is required to pay in a bogus advertising case can far outweigh the damage actually suffered by consumers.
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