Delaware AG Fines Furniture Retailer for Fraud

February 27, 2014  by in Furniture Retailing, Industry, Legal   

The Delaware Attorney General's office filed an administrative complaint against Michael Wharton, owner of the store, following consumer complaints. The office said the retailer committed 23 violations of the the state's Consumer Fraud Act.

The administrative complaint centered on allegations that Wharton would promise customers to have furniture ready by a certain date but never deliver and that he charged customers additional, undisclosed fees if they called to check on the order or complained about the store’s business practices.

Former Amish Mill customers testified at a hearing that they waited months past the timeframe when Wharton said their furniture would be delivered. They also testified the retailer charged hidden fees including $5.99 if they called to check on the status of their overdue orders or $85 for posting negative comments online.

The signed order said Wharton not only failed to deliver items within the promised time frame, but in some cases never had any intention of having the ordered furniture built. When customers complained, no attempt to resolve the situation was made. Instead, additional fees were tacked onto their bills or they were told their orders were nonrefundable.

In addition to the $23,000 Wharton must pay the office issued a Cease and Desist Order subjecting Wharton to penalties if he assesses undisclosed fees or retains customer deposits for items he fails to deliver.