Cordray ends going-out-of-business sale

Nick Rees Dec. 18, 2009, 3:53pm

COLUMBUS, Ohio (Legal Newsline) - Ohio Attorney General Richard Cordray's request to end a jewelry company's going-out-of-business sale that has last for several months has been granted by a Delaware County Court of Common Pleas judge.

Cordray had requested that International Diamond and Gold Company end its Ohio going-out-of-business events, which he said had been conducted at various Ohio locations for more than 90 days. Cordray also alleged that inventory at the sales was being supplemented by IDG. Both actions are violations of Ohio consumer law.

"When a going-out-of-business sale lasts for months on end, it's deceptive and unfair to consumers who believe they're getting the best deals and the lowest prices," Cordray said. "It also gives this business an unfair advantage over competing businesses that follow the law."

The Ohio-based IDG sold jewelry at four Columbus locations. Following an investigation launched by Cordray in August, it was revealed that IDG had been running its going-out-of-business sale since May. The sale continued with no apparent end date. Continued investigation showed that IDG was supplementing its inventory for the sale from other suppliers, a violation of the law.

A cease and desist notice was filed by Cordray on Aug. 27, requiring IDG to immediately cease conducting its going-out-of-business sale. The notice was ignored by IDG and the sale was continued in violation of the law.

IDG was subsequently charged in October with violations of Ohio's Consumer Sales Practices Act and Ohio's Distress Sale Rule. The Delaware County Court of Common Please Court ruled on Thursday that IDG had violated the CSPA and the Distress Sale Rule, ordering IDG to end its sale by close of business on Dec. 24. The court order also ordered IDG to not further restock inventory.

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