Ashley Furniture class action alleges service contracts misleading, falsely advertised

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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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