Ashley store licensee pays $400,000 settlement
Arizona AG received consumer complaints
By Furniture Today Staff -- Furniture Today, January 31, 2008
PHOENIX — The Ashley Furniture HomeStores licensee here has agreed to pay the state of Arizona $400,000 to settle consumer complaints about delivery problems and allegations of deceptive advertising.
Attorney General Terry Goddard said his office received numerous complaints in 2004 and 2005 about late deliveries and defective furniture.
The AG said Southwestern Furniture of Wisconsin, doing business as Ashley Furniture HomeStores in the Phoenix area, “used 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.”
The state’s complaint also charged that the retailer didn’t adequately disclose the minimum purchase requirement to qualify for zero-interest financing.
Southwestern Furniture, led by President and CEO Michael Jedlowski, said in a statement that it denied wrongdoing and “has settled to avoid the uncertainties, costs and distractions associated with litigation.”
The company said it has improved its customer service procedures. It attributed the 2004 and 2005 complaints to rapid growth.
“In all honesty, we grew too fast over a short period of time and we were not prepared for the volume of business that would affect manufacturing and operational delays, which ultimately and unfortunately affected our valued customers,” he said
The state said the settlement money will be used to pay for consumer fraud education, attorneys’ fees and investigation costs.
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Ashley dealer settles complaints in Ariz.
Feb 3, 2008
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