Keystone Today

Attorney General Josh Shapiro has announced that he has continued his pursuit of stopping retailers undergoing deceptive practices by entering into six settlements with Ashley HomeStore about “Hang Tag” violations.

According to a release by AG Shapiro on March 10, his office has entered into six “Assurances of Voluntary Compliances” that were filed by Deputy Attorney Merna T. Hoffman. The settlements with Ashley HomeStores in Pennsylvania give clear information to customers about “hang tags” on rent-to-own items at 22 stores across the Pennsylvania. The Hang Tag law requires that a retailer give basic terms of a transaction to be displayed to consumers on a tag physically attached to items that are rent-to-own. Terms include the rental payment amount, cash prices, 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 AG Shapiro. “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.”

Shapiro’s office stated that customers are often unaware of true costs and financing options “due to certain deceptive practices in the industry.” An example is that consumers often do not know they are obtaining rent-to-own financing and believe it is just traditional credit. They also often do not know they could be charged double the cash price of the property, which would be 152% annual interest.

In 2020, Shapiro’s office sued out of state rent-to-own company Snap Finance. The company has partnered with more than 1,000 retailers across the state and has reportedly been involved in violating consumer protection laws, the release stated. Ashley HomeStore and many rent-to-own companies have partnered with out-of-state rent to own finance companies that cater to low-income residents with poor or no credit.

The Attorney General’s office has settled with 14 owners of at least 175 retail stores including Ashley HomeStore and other major companies like Mattress Firm, which has 72 stores, and Big Lots with 71 stores. The retailers have agreed to comply with the Rental Purchase Agreement Act. He said his work is far from over.

“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. “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.”

Anyone who thinks they have been a victim of any deceptive business practices with rent-to-own companies and retail outlets can file a complaint online or email scams@attorneygeneral.gov.