The settlement requires the company to pay $78,810.71 in restitution to 57 consumers who filed complaints and an additional $206,115.37 to 232 other eligible customers. The company must also pay $75,000 in penalties and $2,000 in costs to New York state.

The Office of the Attorney General opened its investigation after receiving 270 consumer complaints. The inquiry revealed that 1StopBedrooms advertised furniture as "in stock" with quick shipping dates, sometimes within 30 days, while actual delivery took much longer. The company failed to provide legally required notices informing consumers of their right to a full refund due to these delays.

Under New York law, sellers must notify customers of delivery delays and offer cancellation with a full refund if they cannot deliver non-custom-made furniture within 30 days of purchase. 1StopBedrooms violated this by charging a 15 percent "restocking" fee plus $2.25 per pound in return shipping fees on canceled or delayed orders.

The investigation also found that the store required consumers to withdraw complaints from the Better Business Bureau and other review platforms as a condition of receiving refunds. Additionally, the company’s policy advertised only 24 hours for consumers to report damaged furniture, a timeframe the AG’s office found inadequate given the company’s failure to adequately repair or replace defective items.

Consumers who purchased furniture from 1StopBedrooms between January 15, 2019, and January 15, 2025, may file restitution claims by emailing 1stopbedroomsclaims@ag.ny.gov before the August 10, 2026 deadline.

Attorney General James stated, "No New Yorker should have to pay hundreds of dollars for furniture only to receive it late or damaged." She noted that her office is requiring 1StopBedrooms to refund customers forced to pay unlawful cancellation fees or unable to cancel orders delayed for months.

The enforcement action is part of the Attorney General’s broader consumer protection initiative. Recent similar settlements include $600,000 from Equinox for subscription disclosure failures and $4.8 million for SmileDirectClub customers following the company’s bankruptcy.

The 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.