For Immediate Release:
July 16, 2003

For Further Information Contact:
Peter Aseltine (609) 292-4791

NEWARK - New Jersey has filed suit against Unclaimed Freight Company, L.L.C., and JRNA, Inc., a Pennsylvania company which has done business under the name and logo of "Unclaimed Freight," alleging they violated the State's consumer protection laws and defrauded consumers in connection with their furniture sales and advertisements, Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos announced today.

The State's eight-count complaint, filed in Somerset County Superior Court, Chancery Division, alleges that both companies engaged in separate violations of the Consumer Fraud Act and regulations governing advertising and sales. Unclaimed Freight Company, L.L.C, and JRNA, Inc., have operated out of the same New Jersey locations at 7601 Kaighn Ave., Pennsauken, and 1135 Easton Ave., Somerset. Both defendants appear to have also operated out of Pennsylvania locations in Bethlehem and Reading.

The complaint alleges that when Unclaimed Freight Company suddenly closed its New Jersey stores in June 2002, it posted signs explaining that its stores were undergoing corporate reorganization and would reopen in July 2002. Since at least November 2002, JRNA, Inc., has been selling furniture in the same New Jersey store locations, and has been using the same "Unclaimed Freight" name and logo during business transactions and in advertisements.

The State's complaint alleges that both defendants violated the Consumer Fraud Act and furniture sales regulations by engaging in false promises and misrepresentations as to the expected pick-up date of furniture; failing to have consumers' merchandise available by or on the promised delivery date; and failing to provide written notice of the impossibility of meeting the promised delivery date, and of their option to obtain a refund or accept delivery at a later date. To date, Consumer Affairs has received a total of 131 consumer complaints alleging the defendants failed to deliver merchandise ordered and/or failed to provide consumers with refunds. The Division received investigative assistance from Camden County and Somerset County consumer affairs offices.

"The defendants' alleged business practices are deplorable," Attorney General Harvey said. "The rules of doing business in New Jersey are simple: Comply with State laws or face the consequences."

"Our suit seeks to put an end to the defendants' alleged unlawful activities and to obtain restitution for affected consumers," Director Erdos said. "We take consumer protection seriously and hope to send the message to other would-be offenders that we will not allow them to take advantage of consumers."

The complaint also alleges that Unclaimed Freight Company violated New Jersey's consumer protection laws and regulations by, among other things:

• failing to return deposits paid by consumers for undelivered merchandise;
  
  
• accepting orders and deposits just days before the stores suddenly closed; and
  
  
• using the store and corporate name "Unclaimed Freight" when those names do not accurately describe the company and the merchandise sold. Unclaimed Freight ordered furniture from manufacturers, and such furniture was frequently on back order, out of stock, discontinued or yet to be delivered by the manufacturer.

Furthermore, the complaint alleges, JRNA, Inc. committed multiple violations of the State's advertising regulations by:

• stating that "some items not exactly as illustrated" without stating which furniture items may not be exactly as illustrated, or what the limiting factors might be;
  
  
• stating that "we reserve the right to limit quantities," without identifying which items may be limited in quantity;
  
  
• advertising furniture at reduced prices without stating the period of time during which the price reductions and coupons are valid; and
  
  
• offering coupons for 30-inch bar stools for $19.95 each when the description appearing in less than 10-point font states, "must be purchased in pairs."

In addition to seeking an order enjoining the defendants from violating New Jersey's consumer protection laws and regulations and requiring them to pay restitution, the State's suit also seeks to have Unclaimed Freight Company and JRNA, Inc. pay civil monetary penalties, costs and attorney's fees.

Deputy Attorney General Sharon Hussong Moscato of the Division of Law is handling this case for the State.