FOR IMMEDIATE RELEASE:
May 31, 2002
FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK - Jennifer Convertibles, Inc., has entered into an agreement with New Jersey to ensure its advertisements appearing in New Jersey are not deceptive to consumers, to make certain disclosures to consumers regarding their purchases, and to comply with the State's Consumer Fraud Act, Attorney General David Samson and New Jersey Division of Consumer Affairs Director Reni Erdos said today.

The agreement comes five months after New Jersey sued the furniture retailer and 26 of its stores located throughout New Jersey amid more than 100 consumer complaints alleging the company sold defective merchandise, improperly billed consumers, falsely advertised sales and failed to deliver furniture when promised.

As part of the settlement agreement, Jennifer Convertibles will work to resolve current and future consumer complaints filed against the company with Consumer Affairs.

Specifically, Consumer Affairs will forward to Jennifer Convertibles a list identifying all currently outstanding consumer complaints. Within 60 days of receiving the list, Jennifer Convertibles must provide proof to Consumer Affairs as to each consumer who has been satisfied. If Jennifer Convertibles is unable to resolve a complaint, the company has agreed to enter into binding arbitration for final resolution through Consumer Affairs' Alternative Dispute Resolution Unit. In addition, for a one-year period following the signing of the agreement, Consumer Affairs will continue to forward to Jennifer Convertibles any consumer complaint it receives against the company for resolution.

Also as part of the agreement, Jennifer Convertibles will pay New Jersey $200,000 to cover the State's investigative and administrative costs as well as future consumer protection initiatives.

Jennifer Convertibles has not admitted any wrongdoing.

"We are glad to be able to put this litigation behind us and move forward to ensure consumers who do business with this company are treated fairly and dealt with honestly," Attorney General Samson said.

"In settling this suit, we accomplished what we set out to do: we helped consumers who have had problems with the company, established a complaint resolution procedure to help other consumers with future complaints and received assurances from the company it will take meaningful steps to ensure consumers are not deceived," Erdos said.

Under the terms of the agreement, Jennifer Convertibles will, among other things:

• Provide consumers with notice of all applicable material terms regarding the merchandise purchased, including, but not limited to, refund and exchange policies, cancellation and/or restocking fees, deposit return policies, financing offers, policies regarding damaged merchandise and/or policies regarding extended warranties.
  

• Promptly respond to consumer reports of defective and/or damaged merchandise.
  

• Provide refunds, credits and exchanges in accordance with its stated policy for refunds, credits and exchanges.
  

• Sell merchandise that conforms with the representations made and/or the models shown to consumers at the time of sale.
  

• Ensure that all advertisements in New Jersey comply with the State's advertising regulations. This includes making sure that any text boxes or headlines advertising financing offers include, in 10 point size and font and on the same page in the advertisement, one of the following statements:

(a) "Subject to credit approval. Payment of tax and delivery charges required at time of purchase. Not all products available in all showrooms. If not paid in full within ___ (days) (months), finance charges will be assessed from date of delivery at current annual interest rate of __%. Financing available on purchases of $____ or more with delivery. Offer expires on ___;" or

(b) "Subject to credit approval. Payment of tax and delivery charges required at time of purchase. Not good on prior sales or in combination with other discounts. Not good on prior sales or in combination with other discounts. Finance charges will be assessed on your purchase beginning with the date of purchase but will be credited to your account if the purchase is paid in full prior to ___ (date grace period expires). If payment is not paid in full by the expiration date, interest will be charged from the date of purchase. Current annual percentage rate is ___%. Offer expires on _____."

Deputy Attorney General Victoria A. Manning of the Division of Law handled this matter for the State.