Daily News
From Home Furnishing Business
Furniture Store Settles with NY Attorney General
April 23,
2014 by in Furniture Retailing, Industry, Legal 
The New York Attorney General has settled with a furniture store for engaging in deceptive and misleading advertising by holding a fake going-out-of-business sale.
The attorney general said Victor, N.Y.-based Viking International Furniture Corp.'s GOB sale was in violation of New York State law because the retailer was not closing.
Viking has agreed to stop the deceptive practices, pay $30,000 in civil penalties and forfeit its $475 application fee to the town of Victor, N.Y.
"This case sends a clear message that our office will hold businesses accountable when they use false or misleading advertising practices to deceive consumers," said Attorney General Eric Schneiderman. "New Yorkers should be able to trust the claims made by businesses and know that they will be treated fairly in the marketplace." In January, the Town of Victor advised the Office of the Attorney General that Viking obtained a license from the town to conduct a 30-day "going out of business" sale. Two weeks after the start of the sale, the Town advised Viking that its sale did not comply with New York law, which requires that the company note the expiration date of the sale in its ads and post a copy of the remaining inventory in the store. The law also prohibits the company from restocking with new merchandise because "going out of business" represents that the company is trying to liquidate its remaining merchandise and is offering bargain prices.
In February, the furniture retailer applied to the town for a one-time renewal of its license for an additional 30 days. In its application for the renewal, Viking said that it would not add new merchandise to its store, but it broke that agreement along with a New York law that prohibits companies from adding new merchandise when going out of business.
In March, after 60 days of its sale and despite the fact that its license had expired, Viking ran a new "going out of business" sale ad and planned to continue operating. At that point, the attorney general directed Viking to halt its sale.
The attorney general's investigation found that Viking engaged in deceptive business practices as well as false advertising by promoting the sale beyond the 60 days allowed by law. Viking advertised its sale as lasting "five days only," but the sale ran for nearly eight weeks. Viking also violated state law when it ordered additional inventory after the sale began.