State cracks down on going-out-of-business sales
The state is cracking down on retailers who mislead consumers by running seemingly endless going-out-of-business sales.
A rug dealership in Atlanta and a furniture store in Dallas have agreed to cease operations and to pay expenses to the Governor's Office of Consumer Affairs after conducting sales that did not comply with law, the agency said.
The two businesses are Shinco Trading International Inc., which operated as Cyrus Fine Rugs in Atlanta, and Furniture World of Dallas Inc.
Shinco conducted a six-month-long going-out-of-business sale before finally shutting its doors, the agency said.
Furniture World's going-out-of-business sale lasted for more than four months, it said. The store actually increased its inventory during a "total liquidation closeout" with furniture from an affiliate store, the agency said.
Georgia law says such sales may not last more than 90 days, and that at the end of that period, the store can no longer operate that business at that location.
The agency's administrator, Joe Doyle, said the illegal sales "hurt ethical businesses by drawing away customers who are responding to false promises of price reductions and time-limited bargains."
Consumers, he said, "are victimized because they end up paying higher prices for merchandise that they believe has been greatly discounted."
Shinco agreed to reimburse the agency $25,000 for administrative costs, and Furniture World agreed to pay $10,000, the agency said.
A third store, Ben Haverty's Furniture-Xpress in Chamblee, is being investigated, the agency said.
"We're aware of it, and we're looking into it," said agency spokesman Shawn Conroy.
