N.Y. furniture store settles allegations of false 'going out of business' sale

By Bryan Cohen | Apr 24, 2014

ROCHESTER, N.Y. (Legal Newsline) - New York Attorney General Eric Schneiderman announced a settlement on Tuesday with a Victor-based furniture company to resolve allegations of deceptive and misleading advertising.

Viking International Furniture Corporation allegedly deceived consumers into falsely thinking it was holding a going out of business sale. Viking allegedly failed to note the expiration date of the sale in its ads, failed to post a copy of the remaining inventory in the store and restocked its store with new merchandise during a supposed liquidation sale. The law prohibits companies from restocking with new merchandise because going out of business sales are meant to liquidate remaining merchandise.

Viking also allegedly continued its going out of business sale past the expiration of its license and planned to continue operating after the sale.

"This case sends a clear message that our office will hold businesses accountable when they use false or misleading advertising practices to deceive consumers," Schneiderman said. "New Yorkers should be able to trust the claims made by businesses and know that they will be treated fairly in the marketplace."

Under the terms of the settlement, Viking agreed to pay $30,000 in civil penalties to the state, forfeit its $475 application fee to the town of Victor and halt the allegedly deceptive practices.

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