Carpet Store Chain Agrees to Pay $70,000 Fine
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SANTA ANA — L.A. Carpet and Rug Inc., a chain of retail carpeting stores, has agreed to pay a $70,000 fine to settle a civil consumer protection lawsuit filed by the Orange County district attorney’s office.
The company, headquartered in Fountain Valley, allegedly failed to notify consumers that they had the legal right to cancel carpet-purchase contracts signed in their homes. State law gives consumers who make home purchases three days from the date of the sales agreement to change their minds.
In agreeing to the settlement, L.A. Carpet and Rug President Ghaffar Hedayari did not admit liability, the district attorney’s office said. Hedayari could not be reached for comment.
The suit was filed after a consumer complained to the Legal Aid Society that L.A. Carpet and Rugs, whose registered corporate name is Long Affair Carpet and Rug Inc., stated in its home sales contract that consumers did not have the right to cancel contracts.
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