Wednesday, July 29, 2009
Furniture Retailer Charged With Unlawful “going Out Of Business” Scheme
National Furniture Liquidators launched scheme to deceive customers in June
EDINBURG – Texas Attorney General Greg Abbott today charged a McAllen furniture retailer with violating state laws that govern “going out of business” sales. The state’s enforcement action seeks restitution for financially harmed consumers.
Furniture Super Center, L.L.C., which is also known as National Furniture Liquidators at 2246 Nolana in McAllen, launched a sale earlier this year, using “Store Closing Forever” and “Lost Our Lease” banners. The store also hired people to carry signs promoting the sale at busy street intersections.
According to the state’s enforcement action, National Furniture Liquidators misled the public by assuring customers that furniture purchased during the sale could be picked up on the same day of purchase or within two days. Despite those promises, store representatives knew purchased furniture could not be delivered on time because items were not in stock and would have to be ordered from a supplier. This scheme induced customers into buying products they would not have purchased had they known about the delay.
Additionally, employees at National Furniture Liquidators required customers to sign “invoice contracts” with furniture purchases. These contracts contained language stating that customers would not be entitled to refunds, returns or exchanges under any circumstances. As a result, when the company failed to deliver purchased furniture or other store products within the agreed-upon time or a reasonable time, the defendants denied customers’ refund requests.
The Attorney General is seeking penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act. In addition, the defendant failed to file an original inventory with the Hidalgo County Appraisal District and obtain a permit to conduct a “going out of business” sale, as required by law.
Texans who believe they have been deceived by similar fraudulent business practices are encouraged to call the Office of the Attorney General’s toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.
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