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RB’s ‘Sale’ Ads Trigger Lawsuit

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From Associated Press

The district attorney’s office sued RB Furniture for false advertising Friday, saying the furniture store chain’s widely ballyhooed bankruptcy sale was no bargain.

The suit, which also claims unfair competition, alleged that RB artificially inflated the claimed regular prices on furniture to make it appear that the new “sale” prices were lower than they were.

It said the chain also brought in furniture never before sold in its stores for the bankruptcy sale and indicated that the items were being reduced by a certain percentage.

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Bob Moore, an attorney for RB, said he was unaware of the suit and could not comment until after reading the charges.

In a blizzard of radio and newspaper ads, RB has said its stock “is limited” and that its entire stock is being “liquidated” and “everything must go,” the suit said.

“Such statements are untrue and misleading in that inventory is being reordered and replenished, which renders meaningless such claims as ‘limited stock,’ ” the suit said.

In addition to RB, it named Gene Rosenberg Associates and Eugene Rosenberg, a partner in the firm that promotes furniture sales and had contracted with RB to conduct its bankruptcy sale.

Rosenberg said he had no comment and referred calls to RB’s attorney.

The suit seeks an injunction to stop the false advertising as well as civil penalties of $2,500 for every untrue or misleading representation made to each potential consumer and $2,500 each for every act of unfair competition proved at a subsequent trial.

No hearing date has been set.

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