Two Big Furniture E-Commerce Fraud Incidents in the United States
Recently, two major online furniture companies in Pennsylvania, Furniture XO and Furniture PM, were caught in a wave of fraud and complained by consumers nationwide. The Pennsylvania Procuratorate has filed a lawsuit against them.
Kathleen Kane, the Attorney General of Pennsylvania, said Furniture XO, a Philadelphia-based company, was suspected of fraud, but the furniture e-commerce failed to cash in after consumers paid for furniture on its website. Kane filed a lawsuit for an injunction against the company.
The lawsuit pointed out that the defendant, Furniture XO, had a cash flow problem, so they sent the payments paid by the new group of consumers to manufacturers and some distributors to meet orders from early customers or customers demanding refunds, resulting in “delays” in the orders of these new customers.
Another defendant was Furniture PM, which attempted to fulfill Furniture XO’s unprocessed orders and provide refunds to consumers.
It is understood that Furniture PM has not been able to extricate itself from the financial crisis. In many cases, no furniture orders can be submitted to manufacturers or distributors, and after receiving consumer orders, it can not provide furniture in time. Consumers can not return the goods without receiving furniture.