HQ Home reached a settlement with New York Attorney General Eric Schneiderman on Wednesday after the furniture company allegedly deceived customers with false and misleading advertising.
The Henrietta, New York, furniture store allegedly advertised a going-out-of-business sale with merchandise "limited to quantities on hand" while still ordering and receiving new furniture from manufacturers, which violates the state's false advertising law. The advertisements, which began on Jan. 4, said the sale would last for 30 days. They appeared in newspapers throughout the region.
As part of the settlement, the furniture company paid $10,000 in civil fine and gave $500 to the town for the application fee it should have filed for the sale. The town of Henrietta reported the sale after the business failed to obtain a license for the sale.
It also ended the sale and stopped the advertising campaign.
“When businesses deceive customers and violate state law with false and misleading advertisements, there must be consequences,” Schneiderman said. “My office will stand up for consumers and use our enforcement power to penalize dishonest business practices whenever and wherever we find them.”