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Ashley Furniture service contract class action overview:
- Who: Ashley Furniture is being sued by a customer who bought a sofa with a furniture protection plan from the company.
- Why: The plaintiff says the furniture protection plans offered by Ashley are unlawful and deceptive.
- Where: The class action lawsuit was filed in a Florida federal court.
Ashley Furniture sells customers a furniture insurance protection plan that is deceptive, and frequently denies customers coverage unfairly, a new class action lawsuit alleges.
Plaintiff Katie Grasty filed the class action lawsuit against Ashley Furniture Industries, LLC Sept. 13 in a Florida federal court, alleging violations of state and federal consumer laws.
Ashley Furniture markets, administers and sells extended furniture protection plans alongside its furniture, Grasty says.
In October 2019, Grasty bought a Savesto Charcoal Sofa with a service contract for more than $2,300. During the sales process, she says she was encouraged to buy the protection plan, being told it would cover any sort of damage, including damage caused by a dog ripping it, and that it was a prudent investment for her costly purchase.
She agreed, understanding that it would provide protection and give her peace of mind. Grasty says she was not able to review the terms of the service before her purchase, only receiving it electronically after she purchased it.
Ashley Furniture denies insurance claim unfairly, lawsuit alleges
After about two years of normal use, the base of the sofa collapsed in one spot, shortly followed by a collapse in a different location, Grasty says.
When she submitted a claim for coverage, she says she was swiftly denied, told that while the breakage of frames is covered, it is not covered for “excessive damage, misuse, neglect, mishandling, and abuse.”
Grasty says this was an improper decision, because she had indicated the breakage was caused by “normal use” during “normal sitting” on the sofa, not any abuse or misuse.
The company did not investigate or ask any further questions, she says. Thousands of other customers are issued the same “boilerplate denials,” untethered to their specific facts, Grasty alleges.
She is looking to represent anyone in Florida who purchased the coverage, plus a consumer fraud multistate class from Alabama, Montana, Alaska, Texas, Arizona, New Mexico, Mississippi, Utah, Nebraska, South Carolina, Tennessee, and Virginia.
The plaintiff is suing for violations of state consumer fraud laws, for bad faith insurance denial, breach of warranty, negligent misrepresentation, fraud and unjust enrichment. She is seeking certification of the class action, an injunction, damages, fees, costs and a jury trial.
Meanwhile, Ashley Furniture is also facing a false advertising class action lawsuit alleging the furniture chain dupes customers with fictitious “original” prices, leading them to falsely believe they are purchasing furniture at bargain prices.
Have you had an Ashley Furniture service contract? Let us know your experience in the comments!
The plaintiff is represented by Spencer Sheehan of Sheehan & Associates.
The Ashley Furniture Industries class action lawsuit is Katie Grasty v. Ashley Furniture Industries, LLC, Case No. 4:22-cv-00334-MW-MAF in the U.S. District Court for the Northern District of Florida.
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130 thoughts onAshley Furniture class action alleges service contracts misleading, falsely advertised
On March 1 2024, I purchased a King size adjustable bed with all the accommodations! However, as of April 15 2024, I am yet to receive any of the bed furniture associated with my purchase! after reading all of the reviews and recent lawsuit that was dismissed from court! It seems they have been able to continue to operate with prosecution for the company’s deceptive practices! I guess hindsight is always 20-20! I just wish I had done my homework before my purchase from this Ashley Furniture in Greenville, SC! Moreover, after my purchase the sales representative ran outside to photograph me because i also made an instore purchase for inventory? Not sure why my car & tag number had to do with my purchase! I will never buy anything from Ashley Furniture again! Well, today i am going to try and get my money back! But according to the contract! Ashley charges a restock fee! but they failed to fulfill their obligation & deliver the furniture! Live & learn!
I purchased an extended warranty from Ashley for $189.99 when I bought my dad a power recliner in 2020. The warranty is with GBS aka ProtectAll and it is a TOTAL SCAM! The lift motor on the chair stopped working and it’s been over a month since I’ve been trying to get them to repair the recliner. At first they told me they couldn’t do it because they couldn’t talk to my dad and his name is on the warranty. I kept explaining my dad has dementia and I’m his Power of Attorney. Finally when I asked to speak to their legal department they transferred me to a supervisor (who was the first person who spoke clear English I could understand) and I had to email her a copy of the POA. Prior to this they had me email photos of the chair and receipt and said they never got them, yet I sent the POA to the same exact email address and the supervisor was able to receive it AND found my prior email with the photos and receipt. They finally sent a technician out who said he’d put in an expedited order for the lift motor part and that I’d have to call GBS to check the status. When I call GBS they said it takes 5 or so days just to get the report from the technician, then another 5 to 7 days to even find out if the part is available. Then they said IF the part is available it takes 6 to 8 weeks for it to arrive! I asked them where the part was ordered from and they wouldn’t tell me, said I couldn’t order it myself or expedite it. I keep explaining to them my father is elderly and disabled and needs his chair to function properly as it’s negatively impacting his health. His legs are all swollen with fluid because he can’t elevate them and since the chair itself no longer lifts he has trouble getting up. I want to sue Ashley and GBS/ProtectAll for this absolute FRAUDULENT SCAM of a warranty I paid for! I actually went to Ashley’s parts website I found online and in 15 minutes was told the part is available and ordered it myself. The part showed up in 2 or 3 days. Now I have the part and can’t get the technician company, Schatzman, to reply as to when they will put the part on the chair. I’m scared if I do it myself I will be injured but am so livid and upset seeing my father suffer like this that I probably will have to try putting on the part myself. GBS needs to be put out of business and Ashley should not be able to sell these worthless warranties!!!
I would also like to be a part of this class action lawsuit. I purchased a leather natuzzi sectional reclining sofa from Florida Leather Gallery for $5,800 in July 2021. I have been told that they are part of Ashely furniture who provide the 5 year furniture protection plan as 5 Star Service. At purchase I was told this protection plan would cover any stains, tears, spills, etc. and they would either be repaired or replaced as needed. I filed an online claim for s stain on the leather resulting from soda and was told it wasn’t covered. I escalated to management and then to the store that sold it to me but was told there was nothing they could do. If there is an opportunity to particpate in this lawsuit I would like to join.
Purchased couch that’s collapsing in one spot. Please contact me because it’s two years old and the extended service contract refuses to fix the sofa.
We purchase a sofa from an Ashley Furniture Store in Arlington, TX in December 2019. We too purchased the warranty due to deceptive representation that it will cover everything including accidental damage, cuts, rips and anything under earth. They even told us we can make the claim at the store. But now, when we needed to make a claim resulting from normal use, the Store sent us to a third party who rejected our claim. We were left wondering, if claim resulting from normal use isn’t covered, they what is covered?
I purchased a almost $6.000.00 chocolate sectional sofa which carried a one year warranty. Within The one year timeframe the cushions and back of sofa lost its firmness. I tried to file a claim for repairs and I got as close to a case number, the call was disconnected and I was never able to contact the warranty company because the phone call never was answered.
I purchased a living room set as well as the “protection” package. I was told at.the end of the term if there were no issues or claims, I would receive $165.00 back as credit to use in the store. They told me I needed to hold on to that piece of paper until the time expired in order to make a claim or receive the credit. I believe it was a 2 or 3 year coverage. My couches held up and I was ready to purchase a new dining set. I went in with that piece of paper, picked out my furniture and proceeded to complete the transaction. A few days later, an employee called me.from the store and said that I was ineligible to use that credit on my purchase. Not sure why, but when I went back to get that NEEDED piece of paper to prove I still had a credit, it was no where to be found. They ripped me off by making me pay for the protection coverage and stole my credit from me so I could never use it…
Ashley furniture store sold me 2 five year contracts on 2 recliners, and yes they are not standing up to their contract, Denying claims and poor service. I submitted a claim in May 2023, now in October 2023 their turning the claim down because to much time has passed. Yes, it was their fault they missed submitting the claim. I have 2 green recliners and their sending black upholstery? I wish to be part of this class action lawsuit. I’m in North Carolina.
We purchased bed of Ashley in $579 2 months before. Only headboard was delivered so we requested for a refund of amount and return of bed. After one month we got refund based on bed price $379 but we bought bed in $579 excluding tax warranty. We have original receipt as a proof also bank card transaction stating that we bought bed kn $579. But the shocking thing ks customer service is also showing a receipt of $379. How is this possible?
We too purchased a charcoal couch & love seat barely a year ago & purchased the extended warranty that was covered for anything per the sales rep (Who is no longer employed at Ashley) . The arm cracked so we filed a claim with Guardian only to have them give us a hard time that they didn’t have the claim number and could not open the pics, so we sent everything again in the body of the email along with jpg & pdf copies so there would be no excuse. Immediately, we received a denied claim saying we were not covered. This is a tactic used that is up to THEIR INTERPRETATION so they can make any excuse & keep our over $300 “insurance” while we are left with defectively made sofa’s. They got us once but NEVER AGAIN!
They sold us bed in $579 and then only headboard was delivered so we asked for refundand we got refund of amount 379. Now we have original receipt of $579 and also brank transaction proof that we paid 579. But they also showing receipt of $379. This is such a big fraud done by Ashley. Im shocked
I purchased a chair and a half and matching ottoman from Ashley in 2021. I also purchased a 5 year service contract from GBS at that time, which promised “In the event that we’re not able to clean or repair your furniture, you’ll receive a replacement. It’s that simple.” In Feb 2023, the entire support “deck area” collapsed, making the chair unusable. I contacted GBS, a technician was sent to my home. He opened the bottom of the chair, took pictures and said once he got the appropriate part, someone would contact me to schedule the repair. I never heard anything else. I reached out to GBS and was then told that my claim had been denied because the deck area is not part of the frame. The upholstery is covered from accidental spills, stains, rips, tears, burns, punctures, the frame is covered, but the deck area isn’t. The deck area is not listed under the “What’s covered” or the “What’s not covered” section of the paperwork I was given at the store. I signed this contract in good faith believing in their simple promise of repair or replacement. The contract information by GBS I was given was not complete and there is no way I could have known the deck area wasn’t covered.
Ashley furniture sells cheap, substandard furniture. They sell protection plans which are misleading and unhelpful. Most people cannot afford to throw away money on furniture that only works for two years. I would love to join a class action lawsuit against both of these companies.
I’ve been dealing with GBS trying to get my dad’s power recliner fixed and they are the most horrid scam of a company ever! They need to be shut down. They told me it takes 5 to 7 days to even find out if a part is available, then another 6 to 8 months to get it if it’s abat, yet I went to the Ashley parts website directly and ordered and got the part in less than a week. And the person I was chatting with told me the part was available in about 5 minutes. GBS is full of crap!!!!