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Deceptive Advertising

Phoenix, AZ: (Jan-28-08) The state of Arizona brought charges against Ashley Furniture Homestore, alleging that the company had deceptive advertising. The suit was filed after Attorney General's Office received numerous complaints about furniture deliveries that were extremely late and/or the furniture delivered was defective. The complaint filed by the Attorney General accused the furniture dealer of using disclaimer language in its sales order slips, along with a 30% restocking fee, to prevent customers from canceling their orders even though the delivery had been delayed months after the estimated date. Further, the complaint alleged that the company failed to adequately disclose minimum purchase requirements to qualify for zero interest financing.

As part of a settlement reached, Ashley Furniture Homestore has agreed to pay the state of Arizona $400,000 to resolve allegations. Sources stated that the money will be used to pay for consumer fraud education, attorneys' fees and investigation costs. The settlement also requires Ashley Furniture Homestore to change its business practices with regard to advertising and delivery and cancellation of orders. [KTAR NEWS: DECEPTIVE ADVERTISING]

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Published on Jan-29-08


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