Going out of business sale question...

[slodave]

OK, There is a store near me that goes out of business every weekend and random days of the week. The store has never actually gone out of business, but hand a huge banner. Is this legal?

It seems a bit strange and misleading. I tried Google, but didn't find a clear answer. Thanks!

[Porsche-O-Phile]

Sure they're going out of business. They're just not sure when.

[slodave]

They have been doing this for at least three years.

[Don Plumley]

There are various State and City laws and ordinances regarding Truth in Advertising. Section 101 IIRC.

[slodave]

Thanks Don, FTC has some info on this:
http://www.ftc.gov/bcp/conline/pubs/buspubs/ad-faqs.shtm

Does not mention going out of business, but does mention...
What truth-in-advertising rules apply to advertisers?
Under the Federal Trade Commission Act:

* Advertising must be truthful and non-deceptive;
* Advertisers must have evidence to back up their claims; and
* Advertisements cannot be unfair.

Additional laws apply to ads for specialized products like consumer leases, credit, 900 telephone numbers, and products sold through mail order or telephone sales. And every state has consumer protection laws that govern ads running in that state.

What makes an advertisement deceptive?
According to the FTC's Deception Policy Statement, an ad is deceptive if it contains a statement - or omits information - that:

* Is likely to mislead consumers acting reasonably under the circumstances; and
* Is "material" - that is, important to a consumer's decision to buy or use the product.

[Noah930]

What about that rug place on La Cienega (west side), just north of Melrose, that's been going out of business for about 25 years?

[slodave]

I'd like to see this business go. They have been in an old restaurant (remember Sambo's?) and they have never taken care of the lawn and it needs to go.

[craigster59]

The ones I like are the ads that look like an official I.R.S. tax sale and when you read the small print, IRS is "inventory reduction sale".

[Dave L]

In Downtown Toronto there was a shoe store with a sign that said;

Going
Out
for
Business

The sign was at least 2 stories high and the "for" was just readable from across the street. They had the ridiculous sign out for years until I guess they went OUT of business.

[elwood-914]

Visited a waterbed store in the early 80's, "Going out of business sale" The salesman was very pushy so we left. A week later "Grand Re-opening sale". Never went back

[Ronbo]

Originally Posted by slodave

I'd like to see this business go. They have been in an old restaurant (remember Sambo's?) and they have never taken care of the lawn and it needs to go.

Is this the one on Ventura and Reseda? The place looks like a dump.

[slodave]

Originally Posted by Ronbo

Is this the one on Ventura and Reseda? The place looks like a dump.

Yes, that's the one. Never been in there and have no plans to.

[slodave]

OK, no sign all week, but two workers ripped out the crab grass and weeds and planted a few palm trees. Today, the sign is back up. I'm going to take a picture every day for a week and send them to the FTC.

[scottmandue]

Oh wow... Ryan Seacrest on KIIS... thanks for posting this... I would have totaly missed it!

[BlueSideUp]

It's funny you mention that. I was driving up I-405 today and saw a Wicke's Furniture in Huntington Beach that was "Going Out of Business", I thought "weren't they going out of business a couple of months ago?

[slodave]

Originally Posted by scottmandue

Oh wow... Ryan Seacrest on KIIS... thanks for posting this... I would have totaly missed it!

Hehe, the sign bugs me as well, so I thought I'd include it in the picture.

[john walker's workshop]

must be normal for rug stores. seattle had one like that, but the city clamped down after many years and they finally did.

[Hetmann]

I think it is a rug store thing. We had one here in Denver. I went in one time to look around and I didn't think the prices were all that great. A year later they were still going out of business.

[dentist90]

"Going out of Business" sale is the ballsiest version of many I've seen, including:

- Inventory Liquidation sale (just want to reduce stock prior to inventory)
- Receivership sale (somehow they find the money to stay solvent)
- Closing Out sale (closing out just one line they carry)
- Clearance Sale (one table of crap they are clearing)

And who can forget the huge BLOWOUT SALE at Firestone!

[Sapporo Guy]

Maybe they are just selling merchandise from other stores that are going out of business