Lowe’s to pay NY customers $1.1 million for deceptive sales practices

Customers enter the Lowe’s store at the Perimeter Parkway on March 5, 2014.
Customers enter the Lowe’s store at the Perimeter Parkway on March 5, 2014.

Mooresville-based Lowe’s has to refund $1.1 million to New York customers for deceptive practices related to how the company charged for flooring installations.

The refund is part of the settlement of an investigation by state Attorney General Eric Schneiderman’s office, the Syracuse Post-Standard reported Thursday. The money will go to more than 16,000 New Yorkers.

Additionally, the home improvement retailer will pay $900,000 in costs and fees to the state.

According to the attorney general’s investigation, Lowe’s charged customers for floor installations based on how many square feet of carpeting, tile, wood and laminate flooring they ordered for a project instead of those that were actually installed.

The retailer’s method resulted in the customers paying the company and its contractors more when excess material was ordered. Customers weren’t told of the practice, according to the attorney general’s investigation.

Lowe’s could not be immediately reached for comment.

The Post-Standard said investigators are looking at other home improvement retailers’ installation practices as well.

Lowe’s operated 1,846 stores in North America as of July 31. It is the second biggest home improvement retailer in the U.S., right behind Home Depot.

The Associated Press contributed.

Katherine Peralta: 704-358-5079, @katieperalta