Lehigh Times

The Attorney General’s Office has settled with 14 businesses operating at least 175 retail stores, with the most recent being Ashley HomeStores, due to “Hang Tag” violations that deceive consumers.

Attorney General Josh Shapiro announced March 10 his office filed six settlement agreements called Assurances of Voluntary Compliance (AVC), according to a Pennsylvania AG press release.

The Hang Tag law requires retailers provide basic terms of a transaction displayed on a hang tag attached to an item for sale, the release stated. Terms must include the rental payment total, cash price, the number and amount of payments and the cost of lease services.

“The law doesn’t allow businesses to hide the fine print so they can rip off Pennsylvania consumers,” Shapiro said in the release. “You deserve to know the real cost of what you buy, before purchasing it, so you can make smart decisions on how to spend your hard-earned money. My office is committed to enforcing the law against any company that tries to leave consumers hanging.”

Consumers are often unaware of the true cost of financing options due to deceptive practices, the release stated. Many consumers do not realize they are obtaining rent-to-own financing rather than traditional credit, and consumers are often unaware they are charged twice the cash price under those financing agreements, which equals 152% interest annually.

Other furniture stores in Pennsylvania that Shapiro’s office has settled with include Mattress Firm and Big Lots, which have 72 and 71 stores across Pennsylvania respectively, according to the release. Mattress Firm and Big Lots have agreed to comply with the Rental Purchase Agreement Act.

In 2020, Shapiro’s office sued Snap Finance, an out of state rent-to-own finance company, that has partnered with more than 1,000 retailers across the state, the release stated.

“We will continue to work with retailers to ensure the law is obeyed and stand ready to fight for any Pennsylvania consumer who is taken advantage of,” Shapiro said in the release. “I encourage anyone who believes they’ve entered a rent-to-own agreement without seeing a hang tag to file a complaint with my office.”

If you believe you have been the victim of deceptive business practices with rent-to-own companies or other retail outlets, you can file a complaint through Pennsylvania’s AG website. You can also file a complaint via email at scams@attorneygeneral.gov.