National Floors Direct Engaged in Deceptive Business Practices, City Lawsuit Claims

National Floors Direct, with its familiar tv ads, has been a household name in home repair in New York City for years.

But, authorities say that in the last five years, there has been a bevy of complaints against the home-improvement company in New York City which prompted the investigation followed by the lawsuit.

“With this lawsuit, we are putting National Floors Direct and all others who think they are going to take advantage of New York’s consumers on notice: we are watching, and we will take action to protect consumers and recoup their money,” said Mayor Eric Adams.

Since 2019, the city’s Department of Consumer and Worker Protection (DCWP) has received 30 consumer complains against the company detailing what the city says is predatory and deceptive practices, targeting consumers with false advertisements, routinely misleading them about when service will begin, providing poor quality work, and then refusing to offer refunds and cancellations. DCWP is seeking consumer restitution, civil penalties, and the suspension or revocation of National Floors Direct’s Home Improvement Contractor license. DCWP encourages consumers who were deceived or harmed by the company to file a consumer complaint online.

“New York City has some of the strictest consumer protection laws in the nation, and we are going to enforce those laws against operators that try to take advantage of working-class New Yorkers,” Adams said.

The lawsuit was filed on August 13th. According to DCWP, the company has received numerous complaints, and its Yelp rating sits at a troubling 1.6 stars.

The company has long insisted that its work meets industry standards and a company spokesman claimed to be “shocked” by the allegations in the city’s lawsuit. “National Floors Direct is shocked by these allegations and we will vigorously defend ourselves and the integrity of our brand. Since its founding, National Floors Direct has prided itself on providing each of our customers with high-quality installation services, premium name-brand carpet & flooring products, and exceptional customer service at an incredible value. Our care for and commitment to our customers is reflected in our high customer satisfaction ratings, our almost 20 years in business, and our A+ rating with the Better Business Bureau”.

This is not the first time that the home repair company has faced allegations of unfair practices. In 2019, the Federal Trade Commission (FTC) issued a Consent Order against NFD after finding that the company violated the Consumer Review Fairness Act. The company was found to have included unlawful non-disparagement clauses in its contracts, preventing customers from posting negative reviews online. NFD agreed to stop using such clauses, but the latest lawsuit suggests that NFD may have replaced that language with other deceptive tactics, continuing to harm consumers.

Central to the lawsuit is the claim that the company frequently misleads customers about the speed of its services. The company’s website prominently advertises “Free Next Day Flooring Installation,” but customers report that NFD often fails to meet these promises. Some consumers allege that the home improvement company rescheduled their installation appointments as many as 10 times, offering a series of implausible excuses for the delays.

The lawsuit also highlights a particularly troubling practice: NFD reportedly encourages consumers to opt for “emergency installation” services to guarantee faster work. However, despite charging extra for these services, NFD allegedly delays the installations anyway. To make matters worse, the company waives consumers’ cancellation rights, leaving them with no recourse when delays occur.

The impact on consumers has been significant. In 2020, Pauline Stewart contracted NFD for flooring installation, but faced repeated delays. NFD once blamed an accident and, on another occasion, arrived with damaged equipment. Frustrated, Stewart hired another company to complete the work, but NFD refused to refund her $1,600 deposit.

Forrest Williams, another consumer, experienced five delays in 2020, with NFD citing stocking issues. When Williams attempted to cancel the contract and request a refund, NFD denied his request. Similarly, in 2021, Sheila Whitaker had multiple installation appointments rescheduled, with NFD offering excuses ranging from emergencies to a truck breakdown. Ultimately, the company failed to complete the work on her staircase and carpet area, leaving the job unfinished.

“National Floors Direct has truly set the floor for shoddy craftsmanship and their deceptive practices have left dozens of New Yorkers out of thousands of dollars because the company damaged their homes or simply refused to provide services,” said DCWP Commissioner Mayuga. “If you have been harmed by National Floors Direct’s exploitative business practices, I urge you to reach out and file a complaint with us as soon as possible.”

In New York City, individuals and businesses must have a DCWP-issued Home Improvement Contractor license to do construction, repair, remodeling or other home improvement work that costs more than $200 to any residential building. The license does not cover new home construction, plumbing, or purely electrical work. New Yorkers should use DCWP’s License Lookup Tool to make sure a business is licensed with DCWP before entering into a contract with them. See DCWP’s Quick Tips When Hiring a Home Improvement Contractor for more information.

DCWP provides licensed home improvement contractors with a checklist (available in multiple languages) of legal requirements in order to help them avoid violations. In May, DCWP held a Home Improvement Contractor DCWP 101 educational webinar to help applicants and current licensees navigate the Home Improvement Contractor licensing process and understand some of the laws and rules contractors must comply with in New York City. DCWP urges consumers who believe that their contractor failed to perform work as agreed to, who owe them money, or who engaged in unlicensed activity to file a complaint at DCWP’s website or by calling 311.