Peter C. Harvey, Attorney General

Division of Consumer Affairs
Reni Erdos, Director

For Immediate Release:
November 21, 2003

For Further Information Contact:
Jeff Lamm, Genene Morris, 973-504-6327

NEWARK - JRNA, Inc., a Pennsylvania corporation doing business under the name and logo of "Unclaimed Freight," has been ordered to establish certain protections for consumers in connection with its scheduled closing of the "Unclaimed Freight" store in Pennsauken on November 26, Attorney General Peter C. Harvey and New Jersey Division of Consumer Affairs Director Reni Erdos announced today. The order stems from a Complaint filed by the Attorney General in July.

JRNA is selling the "Unclaimed Freight" store in Pennsauken to Diamond Furniture. JRNA also operates an "Unclaimed Freight" store in Somerset. The Attorney General, upon learning of the sale from the Camden County consumer affairs office, filed an Order to Show Cause with the Honorable Roger F. Mahon, Somerset County Superior Court, Chancery Division. Judge Mahon's Order directs JRNA to take the following action:

• Establish a $50,000 escrow fund;
  
  
• Deliver all outstanding orders to Pennsauken consumers by November 26, 2003;
  
  
• If Pennsauken consumers request refunds, provide such refunds no later than 30 days after consumers make such a request;
  
  
• Notify all consumers with outstanding orders or store credits at the Pennsauken and Somerset stores of the sale of the Pennsauken store;
  
  
• Verbally notify all consumers, prior to taking their orders or money, of the sale of the Pennsauken store;
  
  
• Post clear and conspicuous notice inside and outside the Pennsauken store regarding the sale of the Pennsauken store; and
  
  
• Circulate advertisements that clearly disclose the sale of the Pennsauken store.

The order stems from a pending Complaint that the State filed in July against JRNA and Unclaimed Freight Company, L.L.C. The eight-count Complaint alleges that Defendants engaged in multiple violations of the Consumer Fraud Act, Furniture Regulations, and/or Advertising Regulations. At the time the Complaint was filed, Consumer Affairs had received 131 consumer complaints alleging, among other things, the failure to deliver merchandise ordered and/or failure to provide refunds. The Division received investigative assistance from the Camden County and Somerset County consumer affairs offices.

"Customers will finally be getting their furniture or, at their choice, refunds," Attorney General Harvey said. "We're pleased that our actions have produced results for the affected consumers."

"This order holds this business accountable to its customers," Director Erdos noted. "People have a right to expect delivery of the products and services they ordered."

Unclaimed Freight Company, L.L.C. closed its "Unclaimed Freight" stores in Pennsauken and Somerset in June 2002 and posted signs stating it was undergoing a corporate reorganization and would reopen in July 2002. Since at least November 2002, JRNA has been selling furniture at the same two locations and using the same "Unclaimed Freight" name in its business transactions and advertisements.

Deputy Attorney General Sharon Hussong Moscato of the Division of Law is handling this case for the State.