New York AG’s 1StopBedrooms Settlement: Restitution and Filing

If you bought furniture from 1StopBedrooms and had problems with delivery, cancellation fees, or damaged items, you may be able to collect money through the 1StopBedrooms settlement claim process run by the New York Attorney General’s office. Under a consent order entered April 9, 2026 in Kings County Supreme Court, Payless Furniture, Inc., which operates 1StopBedrooms, agreed to pay up to $350,000 in restitution to affected customers, plus $75,000 in civil penalties to the state.1 The deadline to file a claim is August 10, 2026.

Who Qualifies for Restitution

You may be eligible if you purchased furniture from 1StopBedrooms between January 15, 2019 and January 15, 2025 and had at least one of the following experiences:

  • Your delivery was delayed more than 30 days past the promised date.
  • You tried to cancel and were charged a restocking fee, return shipping, or another cancellation fee, or were denied a full refund.
  • Your furniture arrived damaged, defective, or different from what you ordered, and the company would not repair, replace, or refund it.

Customers who already received a full refund, full store credit, or a complete replacement from the company are not eligible. Everyone else who fits the criteria above can file, whether or not they previously complained to the Attorney General’s office or the Better Business Bureau.

The AG’s office has already identified 289 consumers from its investigation: 57 who filed complaints directly with the AG or BBB, and 232 more pulled from company records. If you are in that group, restitution is set aside for you specifically. If you are not, you can still file as an additional claimant and share in whatever remains.

How to File Your Claim

Send a claim by email to 1stopbedroomsclaims@ag.ny.gov. Submissions must be received by August 10, 2026.

The consent order does not prescribe a specific claim form in the public materials, so include enough information for the AG’s office to verify your purchase and your issue. At a minimum, that means your name and contact information, the order date and order number if you have it, what you bought and how much you paid, a description of what went wrong (late delivery, cancellation fee charged, damaged item, refusal to refund), any amount you believe you are owed, and copies of receipts, order confirmations, cancellation requests, or correspondence with the company.

If you need help or have questions about an ongoing issue with an online purchase, the AG’s consumer helpline is 1-800-771-7755, and complaints can also be filed through the office’s website.

How Much Money You Can Expect

The settlement earmarks specific amounts for the identified consumers:

  • $78,810.71 for the 57 original complainants, due within seven days of the order’s effective date.
  • $206,115.37 for the 232 additional consumers identified in the investigation, due within 30 days.

Total restitution is capped at $350,000. If the volume of eligible claims from new filers pushes the total above the amounts already allocated, the remaining money is divided on a pro rata basis, meaning each qualifying claimant receives a proportional share rather than their full loss. The company has 10 days to replenish the fund up to the cap after receiving notice from the AG.

Individual payout amounts depend on what you paid, what went wrong, and how many people file. The order does not guarantee a full refund for every claimant.

What 1StopBedrooms Was Accused of

Reading the specific practices the AG targeted may help you decide whether your experience qualifies. The investigation, triggered by 270 consumer complaints, found that 1StopBedrooms advertised furniture as “in stock” with 30-day or shorter delivery estimates when actual shipping times ran much longer. New York law requires sellers of non-custom furniture to notify customers of delays and offer a full-refund cancellation option; the AG found the company routinely skipped those notices.

When customers tried to cancel delayed orders, the company charged a 15 percent restocking fee plus return shipping of $2.25 per pound, consuming much of the purchase price on large items. Some buyers received only partial refunds, and some received nothing. Customers whose furniture arrived damaged or incorrect faced a 24-hour window to report problems, which the AG described as unrealistically tight and which disqualified many buyers from any remedy.

The investigation also found that the company pressured customers to withdraw BBB complaints or delete negative online reviews as a condition of receiving a refund. The BBB’s own records showed 944 complaints against the business over a three-year period.

1StopBedrooms did not admit or deny the allegations in agreeing to the consent order.

What Changes for Future Buyers

If you are considering a purchase from 1StopBedrooms now, the consent order permanently requires the company to:

  • Disclose estimated delivery dates in writing on every purchase order.
  • Send a court-approved delay notice offering a full-refund cancellation whenever delivery runs more than 30 days late.
  • Stop charging restocking or cancellation fees on orders not delivered within 30 days or that arrive damaged or defective.
  • Remove the 24-hour reporting window for damaged goods from its terms and conditions.
  • Display return, refund, and restocking fee policies clearly on its website.
  • Stop sending threatening or cease-and-desist letters to customers who complain to government agencies or the BBB.

A company officer must certify compliance within 90 days of the order, and the company must file three follow-up reports every six months detailing complaints received and how they were resolved. The court keeps continuing jurisdiction, and violations can trigger contempt proceedings and nine percent annual interest on any outstanding amounts.

You Can Still Sue Separately

Filing a claim through the Attorney General does not waive your right to bring a private lawsuit against 1StopBedrooms. The consent order explicitly preserves individual consumers’ ability to pursue their own legal action. If your losses are substantial and you believe a settlement payment will not cover them, consult a consumer protection attorney before the AG claim deadline so you understand how the two paths interact.

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