Erie County Times

Attorney General Josh Shapiro insists on going after retailers that violate consumer protection laws.

Shapiro announced March 10 that his office has entered six settlement agreements, known as “Assurance of Voluntary Compliance” (AVC) settlements, with Ashley HomeStores to protect consumers from deceptive business practices, according to a press release from his office.

As part of the agreements, all 22 Ashley Homestores in Pennsylvania will now provide clear information to consumers about “hang tags” on rent-to-own items, the release stated. The Hang Tag law requires retailers to display basic terms of a transaction to consumers on a tag attached to items that are rent-to-own. These terms include the rental payment amount, the cash price for the item, the total number and amount of payments, and the cost of the lease.

“The law doesn’t allow businesses to hide the fine print so they can rip off Pennsylvania consumers,” said Shapiro 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 costs and financing options rent-to-own purchases “due to certain deceptive practices in the industry,” according to the release. This decreased awareness can lead consumers to paying double the cash price of the property, which equates to 152% annual interest when the item is financed.

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

Several rent-to-own companies including Ashley HomeStores, partner with companies like Snap Finance to provide financing options for low-income residents and those with poor or no credit, according to the release.

Shapiro’s office has filed 14 AVCs against businesses that operate at least 175 retail stores, including companies like Mattress Firm and Big Lots, the release stated. The retailers in those filings agreed to comply with the Rental Purchase Agreement Act.

“Our work here is far from over,” said Shapiro in the release. “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. 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.