National Floors Direct has been a household name in the New York City home improvement industry for years with its popular television commercials.

But authorities say there have been a number of complaints against the New York-based home improvement company over the past five years, which led to the investigation and subsequent lawsuit.

“With this lawsuit, we are issuing a warning to National Floors Direct and anyone else who believes they can take advantage of New York City consumers: We are watching and will take action to protect consumers and get their money back,” said Mayor Eric Adams.

Since 2019, the city’s Department of Consumer and Worker Protection (DCWP) has received 30 consumer complaints against the company, in which the city details its predatory and deceptive practices: targeting consumers with false advertisements, regularly misleading them about when service will begin, providing substandard work, and refusing refunds and cancellations. DCWP is seeking compensation, civil penalties, and the suspension or revocation of National Floors Direct’s license as a contractor. DCWP encourages consumers who have been deceived or harmed by the company to file a consumer complaint online.

“New York City has some of the strongest consumer protection laws in the country, and we will enforce those laws against operators who seek to exploit working-class New Yorkers,” Adams said.

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

The company has long insisted its work meets industry standards, and a company spokesperson said it was “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 inception, National Floors Direct has prided itself on providing each of our customers with quality installation services, premium name-brand carpet and flooring, and exceptional customer service at an incredible value. Our care and commitment to our customers is reflected in our high customer satisfaction ratings, nearly 20 years in business, and our A+ rating with the Better Business Bureau.”

This isn’t the first time the home repair company has faced allegations of unfair business practices. In 2019, the Federal Trade Commission (FTC) issued a consent order against NFD after finding that the company had violated the Consumer Review Fairness Act. The company was found to have included unlawful non-disparagement clauses in its contracts that prevented 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.

At the heart of the lawsuit is the allegation 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 deliver on those promises. Some consumers claim that the home improvement company has rescheduled their installation appointments up to 10 times and made a number of implausible excuses for the delays.

The lawsuit also sheds a particularly disturbing light on the practice: NFD reportedly encourages consumers to opt for “emergency installation services” to ensure faster work. Although NFD charges extra for these services, it allegedly delays installations anyway. To make matters worse, the company waives consumers’ right to cancel, leaving them without recourse in the event of delays.

The impact on consumers has been significant. In 2020, Pauline Stewart hired NFD to install flooring, but faced repeated delays. On one occasion, NFD blamed an accident and on another, NFD showed up with damaged equipment. Frustrated, Stewart hired another company to do the work, but NFD refused to refund her $1,600 deposit.

Forrest Williams, another client, experienced five delays in 2020, with NFD citing inventory issues. When Williams tried to cancel the contract and ask for a refund, NFD denied his request. Likewise, several installation dates for Sheila Whitaker had to be rescheduled in 2021, with NFD citing excuses ranging from emergencies to a truck breakdown. Ultimately, the company was unable to complete work on her staircase and carpet area, leaving the job unfinished.

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

In New York City, individuals and businesses must have a general contractor’s license issued by DCWP to perform construction, repair, remodeling, or other residential home improvement work that costs more than $200. The license does not apply to new home construction, plumbing, or purely electrical work. New Yorkers should use DCWP’s license search tool to make sure a company is licensed by DCWP before entering into a contract with them. For more information, see DCWP’s quick tips for hiring a general contractor.

DCWP provides licensed contractors with a checklist (available in multiple languages) of legal requirements to avoid violations. In May, DCWP hosted a contractor training webinar, DCWP 101, to help applicants and current license holders navigate the contractor licensing process and understand some of the laws and regulations that contractors must follow in New York City. DCWP urges consumers who believe their contractor has not performed the agreed-upon work, owes them money, or has been operating without a license to file a complaint on DCWP’s website or call 311.