Daily News
From Home Furnishing Business
NY Retailer to Pay False Advertising Fine
March 24,
2016 by in Industry, Legal
A New York retailer has agreed to pay a $30,000 fine and comply with that state’s law following a settlement with the N.Y. attorney general over a store closing sale.
Eric Schneiderman, attorney general for New York, said the Carolina Furniture made deceptive representations in its sale advertisements and did not obtain a license prior to the sale.
“It is against the law for businesses to make false promises to get customers in the door,” Schneiderman said. “My office will keep fighting to ensure that all companies doing business in New York play by the rules.”
In February 2014, Whole Foods bought out the lease for Carolina Furniture’s Amherst, N.Y., location. The retailer, which had three stores, decided to operate a “store closing sale” at all of its retail locations. The store closing sale began in August and ran through Nov. 27.
The retailer’s advertisements proclaimed the company as conducting a $3 million liquidation sale and that everything had to be sold. Carolina Furniture was not liquidating, making the claims untrue. In addition, the retailer mailed letters to 40,000 customers inviting them to a private, four-day sale. However, the stores were open to everyone.
The attorney general’s office also disputed the company’s claims that the sale features unheard of discounts, the lowest prices offered and the largest sale in the retailer’s history.