SANTA ANA : Chain Is Fined on False Ad Allegations
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Oshman’s Sporting Goods Inc., a retailer of sporting goods equipment, has agreed to pay $175,000 in civil penalties stemming from the district attorney’s accusation that its stores engaged in unfair business practices by falsely advertising items for sale.
The district attorney’s complaint, filed in Santa Ana, alleged that Oshman’s would advertise that items were offered “on sale” or “reduced,” when in fact the price charged was the retailer’s regular price.
“Such representations are misleading in that the consumer is led to believe the merchandise is available for this price for only a short time and that prompt action is necessary in order to take advantage of a savings,” said Deputy Dist. Atty. Jan Nolan, who is in charge of her office’s consumer fraud unit.
Nolan added that such advertising discourages the consumer from price-comparison shopping, and thus damages Oshman’s competitors.
Oshman’s agreed to the penalties on condition that it did not have to admit any wrongdoing.
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