NEWARK
— New Jersey has filed suit against
Unclaimed Freight Company, L.L.C., and
JRNA, Inc., a Pennsylvania company which
has done business under the name and logo
of "Unclaimed Freight," alleging
they violated the State's consumer protection
laws and defrauded consumers in connection
with their furniture sales and advertisements,
Attorney General Peter C. Harvey and Consumer
Affairs Director Reni Erdos announced
today.
The State's eight-count complaint, filed
in Somerset County Superior Court, Chancery
Division, alleges that both companies
engaged in separate violations of the
Consumer Fraud Act and regulations governing
advertising and sales. Unclaimed Freight
Company, L.L.C, and JRNA, Inc., have operated
out of the same New Jersey locations at
7601 Kaighn Ave., Pennsauken, and 1135
Easton Ave., Somerset. Both defendants
appear to have also operated out of Pennsylvania
locations in Bethlehem and Reading.
The complaint alleges that when Unclaimed
Freight Company suddenly closed its New
Jersey stores in June 2002, it posted
signs explaining that its stores were
undergoing corporate reorganization and
would reopen in July 2002. Since at least
November 2002, JRNA, Inc., has been selling
furniture in the same New Jersey store
locations, and has been using the same
"Unclaimed Freight" name and
logo during business transactions and
in advertisements.
The State's complaint alleges that both
defendants violated the Consumer Fraud
Act and furniture sales regulations by
engaging in false promises and misrepresentations
as to the expected pick-up date of furniture;
failing to have consumers' merchandise
available by or on the promised delivery
date; and failing to provide written notice
of the impossibility of meeting the promised
delivery date, and of their option to
obtain a refund or accept delivery at
a later date. To date, Consumer Affairs
has received a total of 131 consumer complaints
alleging the defendants failed to deliver
merchandise ordered and/or failed to provide
consumers with refunds. The Division received
investigative assistance from Camden County
and Somerset County consumer affairs offices.
"The
defendants' alleged business practices
are deplorable," Attorney General
Harvey said. "The rules of doing
business in New Jersey are simple: Comply
with State laws or face the consequences."
"Our
suit seeks to put an end to the defendants'
alleged unlawful activities and to obtain
restitution for affected consumers,"
Director Erdos said. "We take consumer
protection seriously and hope to send
the message to other would-be offenders
that we will not allow them to take advantage
of consumers."
The complaint also alleges that Unclaimed
Freight Company violated New Jersey's
consumer protection laws and regulations
by, among other things:
failing to return deposits paid by consumers
for undelivered merchandise; accepting
orders and deposits just days before the
stores suddenly closed; and using the
store and corporate name "Unclaimed
Freight" when those names do not
accurately describe the company and the
merchandise sold. Unclaimed Freight ordered
furniture from manufacturers, and such
furniture was frequently on back order,
out of stock, discontinued or yet to be
delivered by the manufacturer.
Furthermore, the complaint alleges, JRNA,
Inc. committed multiple violations of
the State's advertising regulations by:
stating that "some items not exactly
as illustrated" without stating which
furniture items may not be exactly as
illustrated, or what the limiting factors
might be; stating that "we reserve
the right to limit quantities," without
identifying which items may be limited
in quantity; advertising furniture at
reduced prices without stating the period
of time during which the price reductions
and coupons are valid; and offering coupons
for 30-inch bar stools for $19.95 each
when the description appearing in less
than 10-point font states, "must
be purchased in pairs."
In addition to seeking an order enjoining
the defendants from violating New Jersey's
consumer protection laws and regulations
and requiring them to pay restitution,
the State's suit also seeks to have Unclaimed
Freight Company and JRNA, Inc. pay civil
monetary penalties, costs and attorney's
fees.
Deputy Attorney General Sharon Hussong
Moscato of the Division
of Law is handling this case for the
State.
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