Posted by A recent Lowe’s Laminate Flooring lawsuit focuses on formaldehyde emissions and deceptive marketing practices. The investor who filed the lawsuit is a Chinese hedge fund analyst. Xuhua Zhou contacted CBS News to discuss the potential dangers of Lowe’s flooring. A test of Lowe’s flooring showed that it contains high levels of formaldehyde. Zhou and her colleagues hope to use the lawsuit to help raise awareness of the dangers of these materials.
Formaldehyde emissions from Lowe’s Laminate Flooring
While formaldehyde emissions from a specific product are difficult to predict, many manufacturers conduct tests to determine the level of the chemical in the finished product. According to Lynn Baker, an air pollution specialist at CARB, formaldehyde emissions from laminate flooring can take months or years to off-gas. Products with a high formaldehyde content can take as long as seven years to off-gas, while less toxic options are off-gassed much quicker. In general, laminate flooring will be off-gas mostly in the first few months and is completely off-gassing after two years.
This latest development is troubling because the company sourced its laminate flooring from China. While this is unacceptable, the Consumer Products Safety Commission and the Environmental Protection Agency should include this information in their product testing. Additionally, the company is hiring former FBI Director Louis J. Freeh to review its sourcing program. If the allegations prove to be true, Lowe’s may be facing hundreds of lawsuits.
The company claims to comply with California regulations on formaldehyde emissions. But the test results from the Zhou lab showed that Lowe’s laminate flooring had formaldehyde levels that were 10 times higher than the limit allowed by the government. The company says that it has stopped selling the Tecsun brand of laminate flooring and will do its independent tests to determine how much of the product is contaminated.
Overcharging customers
A New York attorney general has agreed to settle a lawsuit alleging that Lowe’s laminate flooring overcharged customers and failed to provide adequate information about installation charges. As a result, the retailer will refund up to 10 percent of its customers’ fees for installing laminate flooring. The retailer also agreed to stop deceptive sales practices that induced customers to buy more expensive flooring than they needed. The lawsuit alleges that Lowe’s provided inaccurate information about installation fees and overcharged customers by up to $1 million.
Consumers can claim restitution through the class-action lawsuit against Lowe’s for overcharging for laminate flooring. While the retailer makes billions of dollars in revenue annually, complaints against the company have risen over the last few years. Despite these complaints, the retailer has opted to compensate some consumers with up to $1.1 million in refunds. In addition to contacting affected consumers, Lowe’s has also promised to deliver business news free of charge each week.
Deceptive sales practices
After an investigation by the New York Attorney General’s office, Lowe’s Home Centers LLC has agreed to reimburse up to $1 million to consumers who were duped into purchasing flooring and installing it themselves. The store offered customers a square-foot rate for flooring installation that was not applied to the actual cost of the materials. This scam cost the average consumer more than $1,200 in unpaid installation costs. According to the settlement, Lowe’s will refund the $1.1 million in cash to more than 16,000 New York consumers.
In its September 2005 agreement, Lowe’s agreed to assign its intellectual property rights to the PSM and to limit their liability. The agreement was formed under financial coercion, according to the lawsuit. The original agreement, signed in 2003, was part of a consolidation initiative that reduced the number of ISSPs to a few. Moreover, Lowe’s allegedly began providing written descriptions in 2012.
In addition to misleading consumers, Lowe’s also made its advertisements void by changing or deleting the expiration date of the offer. Even if consumers were aware of this, they were still tempted to purchase the appliance, which was advertised as being 40% to 60% off the lowest ticket price. Deceptive practices at Lowe’s have led to several lawsuits and a class action lawsuit. So far, many other companies have been found guilty of similar violations.