Mayor Adams, Commissioner Mayuga Announce Lawsuit Against National Floors Direct Over Deceptive Business Practices

August 13, 2024

Following Investigation, Lawsuit Seeks Consumer Restitution, Civil Penalties, and Suspension or Revocation of National Floors Direct's Home Improvement Contractor License

Lawsuit Alleges National Floors Direct Committed Nearly 2,500 Counts of Violations of Consumer Protection Laws After Receiving Frequent Complaints Detailing Regular Predatory and Deceptive Practices

NEW YORK - New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today announced a lawsuit against National Floors Direct, a nationwide company that sells and installs flooring, alleging nearly 2,500 counts of violations of the city's consumer protection laws. The lawsuit alleges that National Floors Direct preys on consumers by targeting them with false advertisements, routinely misleading them about when service will begin, providing poor quality work, and refusing to offer refunds and cancellations in violation of the law. DCWP is seeking consumer restitution, civil penalties, and the suspension or revocation of National Floors Direct's Home Improvement Contractor license. DCWP encourages consumers who were deceived or harmed by the company to file a consumer complaint online.

"Renovating a home is one of the biggest investments a New Yorker will ever make, and that's why consumers deserve to do business with fair and honest home improvement companies that don't stiff their customers of thousands of dollars and leave them with shoddy work," said Mayor Adams. "New York City has some of the strictest consumer protection laws in the nation, and we are going to enforce those laws against operators that try to take advantage of working-class New Yorkers. With this lawsuit, we are putting National Floors Direct and all others who think they are going to take advantage of New York's consumers on notice: we are watching, and we will take action to protect consumers and recoup their money."

"As we continue to build a more equitable economic future for our city, we must uplift New Yorkers and protect their essential consumer rights," said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. "The alleged conduct in this suit is unacceptable, and our administration's action to hold them accountable is yet another example of our unwavering commitment to working-class New Yorkers and keeping money in their pockets."

"National Floors Direct has truly set the floor for shoddy craftsmanship and their deceptive practices have left dozens of New Yorkers out of thousands of dollars because the company damaged their homes or simply refused to provide services," said DCWP Commissioner Mayuga. "We are committed to protecting consumers and holding predatory companies accountable for violating the rights of our neighbors. If you have been harmed by National Floors Direct's exploitative business practices, I urge you to reach out and file a complaint with us as soon as possible."

National Floors Direct has regularly been one of the most complained about home improvement contractors in New York City over the last five years. Since 2019, DCWP has received 30 consumer complains about the company's detailing predatory and deceptive practices, leading to the investigation.

The lawsuit, filed today, argues that National Floors Direct falsely advertises "free next day flooring installations" only to routinely delay and reschedule appointments multiple times, and then has refused to provide refunds when consumers try to cancel their contract due to the delays, leaving consumers frustrated and without the products or services they paid for. Worse, the company regularly misrepresents the work needed to fulfill contracts, like removing the existing flooring, adding on additional costs for the consumer to simply get what they thought they had already purchased. Consumers are left in the terrible position of either losing the money they have already paid or having to pay hundreds of dollars more than agreed upon to complete the installation. The suit highlights two consumers who were forced to pay nearly $1,000 in additional costs because National Floors Direct failed to disclose additional costs at the time of contract.

The lawsuit goes on to note that when National Floors Direct does fulfil a contract, the work is of such poor quality that consumers regularly pay additional costs just to repair the damage done to their homes. One consumer had to sew together the carpet she paid National Floors Direct to install because it began unraveling shortly after installation. Another had to replace the flooring National Floors Direct installed after just six months because portions were peeling off and uneven. National Floors Direct has refused to provide these consumers with refunds or fix their situation.

National Floors Direct routinely fails to disclose conditions or limitations on its "free" services and fails to disclose additional installation charges in its advertisements. The company offers discounts on basic installations, only to later inform consumers that removing existing flooring is not covered in a basic installation, adding additional costs to consumers.

Finally, the lawsuit claims that National Floors Direct interferes with and violates consumers' rights to cancel contracts within the legally permitted three-day cancellation period. One consumer was told they were not allowed to cancel after just 24 hours and lost a $5,000 deposit. Another consumer was unable to reach anyone at National Floors Direct during the three-day period. The company illegally pocketed the money that these consumers had every right to get refunded.

In New York City, individuals and businesses must have a DCWP-issued Home Improvement Contractor license to do construction, repair, remodeling or other home improvement work that costs more than $200 to any residential building. The license does not cover new home construction, plumbing, or purely electrical work. New Yorkers should use DCWP's License Lookup Tool to make sure a business is licensed with DCWP before entering into a contract with them. See DCWP's Quick Tips When Hiring a Home Improvement Contractor for more information.

DCWP provides licensed home improvement contractors with a checklist (available in multiple languages) of legal requirements in order to help them avoid violations. In May, DCWP held a Home Improvement Contractor DCWP 101 educational webinar to help applicants and current licensees navigate the Home Improvement Contractor licensing process and understand some of the laws and rules contractors must comply with in New York City. DCWP urges consumers who believe that their contractor failed to perform work as agreed to, who owe them money, or who engaged in unlicensed activity to file a complaint at DCWP's website or by calling 311.

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