Delaware News

Wilmington-area furniture store owner fined $23,000 for violating Delaware’s consumer protection laws

Consumer Protection | Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Wednesday, February 26, 2014



Hearing officer sides with Biden’s Consumer Protection Unit, finds owner of The Amish Mill undisclosed fees and willfully misled customers who waited months for orders that never arrived

Wilmington – Delaware Attorney General Beau Biden’s office announced today that an administrative hearing officer has ruled that the owner of The Amish Mill furniture store committed 23 violations of the state’s Consumer Fraud Act and must pay $1,000 per offense.

 

“The bad faith was manifest,” according to the officer’s findings.

 

After receiving numerous complaints from customers, Biden’s Consumer Protection Unit filed an administrative complaint last year against Michael D. Wharton, The Amish Mill’s owner. The administrative complaint centered on allegations that Wharton would promise customers to have furniture ready by a certain date but never deliver and that he charged customers additional, undisclosed fees if they called to check on the order or complained about the store’s business practices.

 

At a recent hearing on the allegations, former Amish Mill customers testified that they waited months past the timeframe when Wharton said their furniture would be delivered and that the hidden fees included $5.99 if they called him to check on the status of their overdue orders or $85 for posting negative comments online.

 

In an opinion signed Monday, an administrative hearing officer agreed with the allegations in the complaint and found Wharton had committed 23 violations of Delaware’s Consumer Fraud Act. Wharton not only failed to deliver items within the promised time frame, the officer found, but in some cases never had any intention of having the ordered furniture built. When customers complained, no attempt to resolve the situation was made. Instead, the fees were tacked onto their bills or they were told their orders were nonrefundable.

 

“One would expect that a businessman who was having legitimate problems with suppliers to be contrite, offer refunds, or in some way accommodate the customer over an item’s extreme lateness,” the officer wrote. “Mr. Wharton’s anger with customers when they inquired about their items is indicative of someone, who, viewing some customers negatively and with a sense of entitlement, sought to drive them away and keep their money.”

 

Wharton even left one customer a voicemail in which he said the customer’s bill was “going up very drastically” because the customer had called to check on his order and posted comments online.

 

In addition to the $23,000 Wharton was ordered to pay, the hearing officer also extended a Cease and Desist Order that Biden’s office issued against Wharton that subjects him to stiff penalties if he assesses undisclosed fees or retains customer deposits for items he fails to deliver items in the timeframe promised. Since Biden’s Consumer Protection Unit brought this administrative action against Amish Mill, the scrutiny has led to several customers receiving their long-delayed orders and other customers receiving refunds after waiting as long as 14 months for furniture that had been ordered and on which deposits had been paid but that were never delivered.

 

Deputy Attorney General Stephen McDonald prosecuted this administrative case for Biden’s Consumer Protection Unit.

 

Findings of Fact

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Wilmington-area furniture store owner fined $23,000 for violating Delaware’s consumer protection laws

Consumer Protection | Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Wednesday, February 26, 2014



Hearing officer sides with Biden’s Consumer Protection Unit, finds owner of The Amish Mill undisclosed fees and willfully misled customers who waited months for orders that never arrived

Wilmington – Delaware Attorney General Beau Biden’s office announced today that an administrative hearing officer has ruled that the owner of The Amish Mill furniture store committed 23 violations of the state’s Consumer Fraud Act and must pay $1,000 per offense.

 

“The bad faith was manifest,” according to the officer’s findings.

 

After receiving numerous complaints from customers, Biden’s Consumer Protection Unit filed an administrative complaint last year against Michael D. Wharton, The Amish Mill’s owner. The administrative complaint centered on allegations that Wharton would promise customers to have furniture ready by a certain date but never deliver and that he charged customers additional, undisclosed fees if they called to check on the order or complained about the store’s business practices.

 

At a recent hearing on the allegations, former Amish Mill customers testified that they waited months past the timeframe when Wharton said their furniture would be delivered and that the hidden fees included $5.99 if they called him to check on the status of their overdue orders or $85 for posting negative comments online.

 

In an opinion signed Monday, an administrative hearing officer agreed with the allegations in the complaint and found Wharton had committed 23 violations of Delaware’s Consumer Fraud Act. Wharton not only failed to deliver items within the promised time frame, the officer found, but in some cases never had any intention of having the ordered furniture built. When customers complained, no attempt to resolve the situation was made. Instead, the fees were tacked onto their bills or they were told their orders were nonrefundable.

 

“One would expect that a businessman who was having legitimate problems with suppliers to be contrite, offer refunds, or in some way accommodate the customer over an item’s extreme lateness,” the officer wrote. “Mr. Wharton’s anger with customers when they inquired about their items is indicative of someone, who, viewing some customers negatively and with a sense of entitlement, sought to drive them away and keep their money.”

 

Wharton even left one customer a voicemail in which he said the customer’s bill was “going up very drastically” because the customer had called to check on his order and posted comments online.

 

In addition to the $23,000 Wharton was ordered to pay, the hearing officer also extended a Cease and Desist Order that Biden’s office issued against Wharton that subjects him to stiff penalties if he assesses undisclosed fees or retains customer deposits for items he fails to deliver items in the timeframe promised. Since Biden’s Consumer Protection Unit brought this administrative action against Amish Mill, the scrutiny has led to several customers receiving their long-delayed orders and other customers receiving refunds after waiting as long as 14 months for furniture that had been ordered and on which deposits had been paid but that were never delivered.

 

Deputy Attorney General Stephen McDonald prosecuted this administrative case for Biden’s Consumer Protection Unit.

 

Findings of Fact

# # #

image_printPrint

Related Topics:  ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.