Shapiro cracking down on violations to ‘hang tag’ law

Delaware County furniture store one of 7 businesses to enter into agreement

A Delaware County furniture store is among seven Philadelphia-area businesses that have entered into an Assurance of Voluntary Compliance with Pennsylvania Attorney General Josh Shapiro concerning “hang tag” laws, according to a release from his office.

Josh Furniture Outlet Inc. (doing business as “VIP Furniture Outlet”) in Upper Darby agreed to pay $797 and abide by the Rental Purchase Agreement Act and Consumer Protection Law, including the use of “hang tags” on all rent-to-own items displayed in its store, according to a settlement agreement filed in the Delaware County Common Pleas Court.

A “hang tag” is a required physical tag that gets attached to each item of property offered for rent and includes information like the periodic payment amount, the number of payments, the cash price, the leasing fees and the total cost to the consumer.

Without these hang tags, Shapiro says consumers can unknowingly pay leasing fees up to twice the cash price of the item — equivalent to 152% annual interest.

The settlement with Josh Furniture Outlet indicates the business was not in compliance with the law last year, but has agreed to cease and desist any further violations of the Consumer Protection Law and the RPAA moving forward.

Other Philadelphiaarea retailers include Best Buy Furniture Rising Sun Inc. and Best Buy Furniture Castor Inc. (both doing business as “Jerusalem Furniture”), American Furniture Design Co. Inc., EZ Furniture Inc., all in Philadelphia, Reading Furniture Market LLC in Berks County, and Mattress Firm, which operates statewide.

Shapiro previously sued Utah-based rent-to-own finance company Snap Finance, which he said has partnered with more than 1,000 Pennsylvania retailers and has played “a significant role” in perpetuating violations of consumer protection laws.

“I sued Snap Finance for deceiving Pennsylvanians, and we will not hesitate to go to court again to take down other bad actors looking to rip off businesses and consumers to make a quick buck,” Shapiro said in a statement. “My office is also pleased to announce that even as the out-of-state rent-toown companies continue to fight us every step of the way, many of the retailers that they partner with have agreed to come into full compliance with the law.”

Shapiro said the “hang tag” initiative will be ongoing and is asking that consumers who see businesses violating the law file a complaint with his office by emailing scams@attorneygeneral.gov or filing a consumer complaint at attorneygeneral.gov/ submit-a-complaint/ consumer-complaint.

MATT ROURKE — THE ASSOCIATED PRESS FILE Pennsylvania Attorney General Josh Shapiro says consumers can unknowingly pay leasing fees up to twice the cash price of an item at rent-to-own stores.