Peter C. Harvey, Attorney General

Division of Consumer Affairs
Reni Erdos, Director

For Immediate Release:
March 1, 2004

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

NEWARK - New Jersey is suing bedding retailer Sleepy's, Inc. ("Sleepy's") alleging the company, among other things, sold defective products to consumers, failed to deliver merchandise as promised and made false or misleading representations in advertisements, Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos said.

The State's five-count complaint, filed in Bergen County Superior Court, alleges that Sleepy's, formerly known as Bedding Discount Center, violated the State's Consumer Fraud Act ("CFA") while engaged in the practice of selling mattresses, box springs, bed frames, beds and other bedding supplies to consumers.

The national chain operates 72 retail stores in New Jersey and routinely advertises its products in television and radio commercials, advertising circulars and newspapers throughout the State. Sleepy's also conducts sales through 1-800-Sleepy's, which also has been named in the State's suit. Sleepy's and 1-800-Sleepy's maintain their principal place of business at 175 Central Avenue South, Bethpage, N.Y.

The State's complaint alleges the defendants violated the CFA and related regulations, including rules governing advertising and furniture delivery by, among other things:

* misleading consumers regarding the companies' exchange policy and as to their right to receive a refund;

* failing to deliver merchandise on the contracted date of delivery and failing to notify consumers of their inability to deliver the merchandise as promised;

* delivering defective and/or damaged merchandise;

* delivering merchandise that was different from what consumers ordered;

* refusing to provide refunds to consumers who complained that they received defective merchandise;

* promising, then failing to send an inspector to consumers' homes to inspect defective or damaged merchandise or only conducting inspections after extensive follow-up by consumers;

* failing to respond to dissatisfied consumers' telephone calls, letters and/or email messages in a timely manner;

* failing to specify the duration of a sale in an advertisement; and

* advertising that a sale contains "The Lowest Prices in Our History" when, in fact, the same merchandise has been offered for sale previously at the same price.

"Companies that do business in New Jersey are expected to deal with consumers in a fair and honest fashion and to adhere to the State's consumer protection laws," Attorney General Harvey said. "Where we find abuses in the marketplace, we will work to ensure that companies responsible for violating State law and harming consumers are held accountable."

"Beds and mattresses are not cheap. They can cost consumers hundreds and, in some cases, thousands of dollars," Director Erdos said. "When bedding retailers attempt to take advantage of consumers, as we allege Sleepy's and 1-800-Sleepy's have done, consumers stand to lose a lot of money, not to mention their peace of mind."

This is the second time in recent months that Consumer Affairs has brought suit against a bedding retailer. In December, Consumer Affairs filed suit against Rockaway Bedding alleging the retailer engaged in unscrupulous business practices by, among other things, selling defective merchandise to consumers and engaging in fraudulent advertising.

Deputy Attorney General Cathleen O'Donnell of the Division of Law is handling this matter for the State.