Appliances and Furniture

N.Y. General Business Law    349, 385, 386, 396-u
  N.Y. Uniform Commercial Code Law

New York State regulates the sale and delivery of appliances and furniture. Home or business furnishings such as chairs, tables, cabinets, sofas, beds, carpets, and major household appliances costing over two hundred dollars ($200) such as air conditioners, stereos, TV sets, washers, and dryers, are covered by this law. The law does not apply to custom-made or made-to-order goods.

The delivery and sales of appliances and furniture and other goods are regulated by the Uniform Commercial Code (U.C.C.). Generally, the Unfair and Deceptive Acts and Practices Act (UDAP) regulates selling and business tactics in an attempt to ensure that throughout the purchasing process the consumer is not being deceived or misled. The U.C.C. is designed to ensure that the products at the time of sale and upon receipt are of merchantable quality. Both the U.C.C. and UDAP work to aid the consumer in receiving an appliance or furniture item that was chosen explicitly by the consumer, and is in new condition.

Click on the link below to find more information about this topic.

• Product Disclosures
• Furniture and Major Appliance Deliveries
• Defective Appliances and Furniture at Purchase
• Recovering Damages for a Defective Appliance or Furniture
• Stopping Payment on a Purchase
• Appliance and Furniture Standards
• Maintenance Agreements for Appliances
• Rent-To-Own Sales
• Deceptive Pricing Tactics and Substitution of Products
• Special Service Technician Rules

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 Product Disclosures

  N.Y. General Business Law     385, 395
  Textile Fiber Products Identification Act,
16 CFR   303

Product Information Disclosures for Furniture: New York State laws prohibit sellers and manufacturers in pursuing unfair and deceptive acts in the labeling, advertising, or sale of household furniture. No term or designation likely to mislead the buyer about the materials of the furniture can be used for the labeling or tagging of the furniture.¹ Additionally, it is unlawful to misbrand, or falsely or deceptively advertise any textile fiber products.² Textile products include furniture, bedding, and other textile goods and fabrics.

Used and Rebuilt Product Disclosure Requirements: Any retailer, who sells used, rebuilt, or reconditioned major household appliances or furniture must identify the product as such by attaching a tag or sticker to the merchandise containing this information. Labels, signs, and advertising must also contain an appropriate description of the goods as used, rebuilt, reconditioned, or repossessed. Consumers who have been deceived by the mislabeling of merchandise should contact the Office of the New York State Attorney General Consumer Hotline at 1-800-771-7755.

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Furniture and Major Appliance Deliveries

  N.Y. General Business Law   396-u

Furniture and major household appliance dealers must include a written estimated delivery date, or range of delivery dates, in the purchase contract. The dealer must deliver the merchandise by the latest date stated for delivery, unless the consumer is notified of a delay and given a new anticipated delivery date, or range of dates, and afforded the right to select one of the following options:

• Canceling the contract and receiving a full refund, which must be sent within two (2) weeks of the consumer’s request;
• Canceling the contract and receiving a credit from the dealer of an amount equal to any deposit made by the consumer;
• Negotiating a new delivery date; or,
• Modifying the contract by selecting new furniture or appliances.

The dealer must honor the consumer’s choice.

Either the consumer or the New York State Attorney General may sue to enforce this law. In actions brought by consumers, the court may award three (3) times the actual damages or one hundred dollars ($100), whichever is greater. If the delivery order is untimely and the consumer decides to cancel the order, the consumer’s money must be refunded within two (2) weeks of the cancellation. This law does not apply to mail order goods, or if the delivery delay was caused by a strike, act of God, or entirely by the consumer’s actions.

Layaway

For information regarding purchasing appliances and furniture through layaway options, please see the chapter entitled Retail Practices in this manual.

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Defective Appliances and Furniture at Purchase

  N.Y. U.C.C. Law   2-A-21
  N.Y. General Business Law   349

If the consumer receives a defective appliance, he or she should first contact the store where the purchase was made and speak with the customer service department. If this proves unsuccessful, the consumer should go to the manager with the complaint.

If the initial complaint is not resolved after these steps, the consumer should send a registered or certified letter (return receipt requested) to the store explaining the defect and the problem. Putting the complaint in writing is a good strategy. It gives notice to the retailer and provides certain legal protections to the consumer.

If an appliance or item of furniture is defective, the consumer should not be fooled into thinking that a store’s “no cash refund” policy makes them unable to recover. Under New York law, there is an implied warranty of merchantability that entitles most consumers to a cash refund where the retailer has sold a defective product, (including appliances and furniture), or when acts of deception and unfairness have occurred.³ If an appliance turns out to be defective and no deception or unfairness has occurred by the seller, a consumer might still recover under New York State’s U.C.C. and the federal Magnuson-Moss Warranty Act,⁴ which standardize the terms of consumer warranties.

Consumers should make sure there is a warranty when purchasing an expensive appliance so that the item can be returned or repaired if it is defective. If a product is sold “as is,” then there is no warranty on that product. Thus, if a consumer discovers a defect after the product has been purchased there is no recourse. Therefore, consumers should make sure to read all labels and ask a sales person or manager for the warranty information before making any purchases. For more information, read the chapter in this manual entitled Warranties.

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Recovering Damages for a Defective Appliance or Furniture

  N.Y. U.C.C. Law   2-3141
  N.Y. General Business Law   349

If the consumer is unable to quickly and informally resolve his or her complaint with the retailer, several legal remedies are available. Legal remedies vary so it is recommended the consumer consult with a private attorney. General information regarding defective appliances and the remedial measures available for consumers is as follows:

1. Written Requirement: The consumer should always request a written warranty from the seller or manufacturer, which grants specific binding legal rights to have the item replaced, repaired, or money refunded.
2. Defect Upon Delivery: New York U.C.C. Law   2-314 provides consumers with the right to return defective goods and receive a refund, and sometimes even additional money damages, via the legal remedies known as rejection and revocation of acceptance. To recover under this theory, the consumer must (1) act within a reasonable time after delivery; and (2) the notification must be in writing.
   
   This law preempts New York General Business Law (GBL)   218-a, which permits retailers to enforce a no cash refund policy if there are a sufficient number of signs notifying customers of its refund policy whether it be in cash, as credit, or store credit only, if the product is defective and there has been a breach of an implied warranty of merchantability (that is, a good being sold for the intention of its usage, is impliedly in the appropriate condition to be working correctly and used as it is marketed).⁵ Additionally, failure to inform customers of their right to the refund policy when the product is defective is a violation of GBL   349 because it misleads a reasonable consumer, and the result of the act is injurious to the consumer.
3. Post-Delivery Defect: A consumer may also recover in cases where the defect existed at the time of the shipment, but could not be discovered until the appliance was used. Generally, the item will be replaced in these circumstances, or the seller must fix the problem.

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Stopping Payment on a Purchase

If the consumer has paid for defective merchandise by check, stopping payment presents risks. The consumer might turn out to be mistaken about the type of defect present or about his or her legal right to return the goods, and therefore might be sued for the amount due.

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Appliance and Furniture Standards

  FTC Labeling Rule 16 C.F.R.   305

The Federal Trade Commission (FTC) has established testing, labeling, and advertising requirements for appliances such as refrigerators, freezers, dishwashers, kitchen ranges and ovens, water heaters, air conditioners, washers and dryers, furnaces, and boilers. The FTC’s Appliance Labeling Rule, in effect since 1980, is designed to help consumers comparison shop for energy-efficient appliances.⁶ Among other things, the Appliance Labeling Rule as required by the federal Energy Policy and Conservation Act requires manufacturers to attach “Energy Guide” labels, which provide an estimate of each product’s annual energy consumption or efficiency, to most major home appliances. For further details on appliance energy standards, visit the FTC website at www.ftc.gov or call 1-877-FTC-HELP.

The U.S. Food and Drug Administration (FDA) has established safety and emissions standards for electronic products such as microwave ovens, television sets, and sun lamps.⁷ If an FDA-regulated appliance is found to be defective or not in compliance with standards, the manufacturer must:

1. Correct the product without charge and reimburse the consumer for any expenses incurred;
2. Replace the product with a similar or equivalent substitute; or,
3. Refund the full cost of the product to the consumer. For further information, visit the FDA website at www.fda.gov.

The U.S. Consumer Product Safety Commission (CPSC) has also established safety standards for refrigerators,⁸ dryers, unvented gas fired space heaters, and other appliances and furniture, and will intervene to protect consumers against the manufacture and sale of hazardous appliances and furniture by ordering recalls, and/or banning such products.

For more information, visit the CPSC website at http://www.cpsc.gov/. To view the CPSC Product Safety Standards and Guidelines for appliances and furniture, visit http://www.cpsc.gov/cgi-bin/regs.aspx.

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Maintenance Agreements for Appliances

  N.Y. General Business Law   395-a

Any seller of retail products purchased for personal, family, or a household purpose that offers a maintenance agreement must provide the consumer with an opportunity to review the agreement before it is purchased. In addition, a copy of the agreement must be given to the consumer at the time of the purchase.

By law, maintenance agreements may not be terminated by the seller unless prior to, or upon delivery, the buyer is notified in writing that the agreement has been cancelled: (1) for non-payment; (2) where use of the item is primarily for commercial purposes; or, (3) due to a change in the buyer’s residence beyond the disclosed service area, except where the buyer provides transportation or shipping to and from the service site. Upon cancellation for a change in the buyer’s residence, the buyer shall receive a pro-rated refund. Mail order companies are exempted from this law.

This maintenance agreement law may be enforced by the New York State Attorney General, the corporation counsel for any city, or by an attorney designated to do so by a local government.

For more information about service contracts and extended warranties, see this Manual’s chapters entitled “Contracts” and “Warranties”.

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Rent-To-Own Sales

  N.Y. Personal Property Law   500 et seq.

The rent-to-own (RTO) industry is a major source of sales, particularly appliance sales, for the low-income community. This option is appealing to consumers as there are typically no credit requirements, low payments, quick delivery, and no cancellation penalties. However, an RTO transaction is often a more expensive alternative than a traditional credit purchase. Consumers should be aware that over the course of the payment plan (generally 12-24 months) they can end up paying significantly more than the item’s cost at retail.

Thus, consumers should compare the total costs of renting to own to the retail price, and assess whether or not this option is actually the best choice. Knowing the total cost of purchase, including all mandatory fees and charges, allows potential customers to compare the cost of a rent-to-own transaction to other alternatives. Prospective purchasers, with available cash or credit, or the willingness to wait until money for a cash purchase can be saved, will likely be able to obtain the merchandise elsewhere at a lower cost.

New York State regulates the standards for the rental purchase agreement.⁹ A store can charge no more than twice the cash purchasing price for the merchandise and certain provisions of the sale must be disclosed to the customer before purchase.¹⁰ In the event that the store does not comply with these laws, the New York State Attorney General and consumers may seek enforcement of the statute and may be entitled to recover from the merchant actual damages, reasonable attorney’s fees, and court costs.¹¹

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Deceptive Pricing Tactics and Substitution of Products

  N.Y. General Business Law    349, 350
  15 U.S.C.   45(a) (1)

The “bait and switch” sales tactic is the advertising of a product with the intention of luring a customer into the establishment to purchase a different, usually much higher priced, product. These tactics are most likely to occur with high-ticket items such as appliances and furniture.

In New York State, the “bait and switch” tactic is considered a deceptive practice. Consumers may recover actual and punitive damages. In addition to a private recovery, the New York State Attorney General can bring an action to obtain injunctive relief and restitution on behalf of the consumers.¹²

Additionally, under the FTC’s UDAP, it is deceptive to deliver furniture and appliances not identical to floor models or other samples displayed at the time of purchase, or to substitute a different product from the one purchased.¹³ In New York, deceptive acts or practices and false advertising are prohibited in business, trade, commerce, or furnishings of any service in the State. Under New York’s UDAP law, the elements of a deceptive trade practice claim include: (1) that the alleged practice was misleading in a material respect; and (2) that the plaintiff was injured.¹⁴ Consumers who have been subjected to unfair or deceptive acts of trade practices while purchasing furniture or appliances should contact the Office of the New York State Attorney General. Consumers can also recover their damages under the New York State UDAP provisions.

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Special Service Technician Rules

There are various consumer protection laws regulating appliance service technicians, electricians, and furniture deliveries in New York City, and the surrounding areas. For specifics relating to these regulations, consumers should contact their local office of consumer affairs. The contact information for these offices is provided in the Appendix of this Manual.

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