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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
Ashely Furniture relationship with 5 Star Services for extended warranty is fraudulent. I also have had damage to my dinning room table. I submitted a claim on 7/5/23 and have yet to hear back from anyone. You can’t email the company, you can call but your put into a black hole voice mail and no one ever returns your call. Even if you hit the key to have them return call you you never hear from them. I can’t get my table fixed let alone replaced. By the time anyone ever decides to get back to me my warranty will have expired. I called Ashely directly and they were unable to assist me. They said they called 5 Star and was told they would email me and I’ve heard nothing. This is terrible service and 5 star should not be a vendor to them. Do not buy this extended warranty. Any NY attorneys want to start a Class Actions in NYS for this?
I hope an attorney in New York initiates a class action suit. My daughter has been dealing with a broken bed issue for a couple of months after buying an expensive warranty. She is ignored by Ashley and Platinum Protection.
NEED TO JOIN THIS LAWSUIT. THEY FAILED TO COVER EXACTLY WHAT THEY SAID THEY WOULD COVER. DENIED ME 3 CLAIMS.
I would like to join the class action suit, however I live in Pennsylvania. I also purchased the protection plan and was refused the repair service. They dragged it out and after almost a year they claimed the damage was caused by personal misuse so they denied my claim.
Bought the protection plan as well for our sofa and when we got the couch we were told because it was delivered that it isn’t covered anymore by the protection plan anymore. So I would like to be included too in this lawsuit. Michigan
Same issue. Told it would cover everything. We have dogs so we bought it. Denied claim…
How do I get included in the lawsuit? I purchased a set of leather furniture for approximately $5000.00 and after about 2 years the leather started ‘falling off’, the color was disappearing. First, leather shouldn’t do this so I put a cover on the couch. I took the cover off yesterday to wash it and the middle cushion (which is never sat on) is tearing at the seams on the side of the cushion. I paid for a protection plan, which is supposed to be a 5 year warranty, so I submitted a claim and they denied the claim that tears in seams are not covered. This is not what was sold to me when I purchased the warranty with Ashley. What’s the point of a warranty if nothing is covered?
Bought a electric recliner online it was delivered the evening of April 27th over the weekend I noticed it wobbled and would make a loud noise when I closed, the guy came out did something with drill and said if it happens again you need a mechanism tell them to send it I will change it, we’ll guess what it happened again with in days and when I called to tell them they didn’t understand why 1 because customer care is in another country and 2 the guy lied how they do things, so they set up appointment the guy came out and I said it happened again he said what are you talking about I told him last time he was here he told me it would happen again, he looked me in the eye and said I have never been here before he lied he went back and forth with us told me he would let us know what he can do he went back and forth with my wife mad and left, he called me back and told me I would pay for arguing with him now I’m being told from Ashley’s that the technician said it was customer damage this is unbelievable since I reported it with in 3 days for delivery now it’s July 18 I’m still waiting on them to fix issue mind you I paid for the insurance they don’t stand behind anyways as well, my advice would be don’t buy anything from Ashley’s they have the worst customer service and policies.
How do I join the lawsuit? My claims keep gett
I went through the same BS during Covid and I’m still going the it now. I have email expressing my dissatisfaction and the 5 year service plan means nothing. Please help!
Thank you. Also I was told to get the online price for the items you had to buy the protection plan which covers very limited damages.
I was forced to buy the protection plan to get a better price…. Could not cancel it… when I needed it (twice), nothing was covered!!! What am I paying for!? Long story if you need the details, and I will not be going back to Ashley furniture