Mervyn’s to Settle ‘Get Away’ Deal Dispute

Mervyn’s “Get Away” travel promotion last winter apparently went a bit too far.

The department store chain this week agreed to pay the state $100,000 to settle charges that it illegally deceived consumers about the cost of the travel offer. However, in settling the charges, Mervyn’s did not admit guilt.

To boost all-important holiday sales, Mervyn’s offered vacation packages to people spending $300 at the store. In return for a $12 processing fee, eligible Mervyn’s customers received certificates for two free round-trip airline tickets to a Mexican resort or to Honolulu.

As reported in this column in November, the deal had a catch: People taking the “free” trips were required to stay at specified hotels for at least seven nights, paying up to $1,386 for rooms alone. The company that put the promotion together for Mervyn’s told us then that the high hotel rates actually covered the air fare.

This week, the state attorney general’s office found that the promotion was deceptive because customers did pay for the air fare and because the cost of the packages was barely competitive, not the “great deal” Mervyn’s had promised.

Commenting on the settlement, Mervyn’s spokeswoman Sandra Salyer said: “We know the retail business better than the travel business. In the future, we are going to stick to what we know best.”

Besides the $100,000 settlement cost, Mervyn’s is refunding the $12 fee to the 1,000 California customers who paid it. People who believe they are entitled to a refund can call (800) 835-8050.

*

Rating the cards: How do the much-touted credit card rebate and reward deals stack up? The newsletter Card Trak came up with this comparison, based on credit card purchases of $4,000 spread over two years.

* General Motors MasterCard: $200 credit toward a new GM truck or car, excluding Saturn models.

* Ford/Citibank Visa: $200 credit toward a new Ford car or truck.

* General Electric Rewards MasterCard: $80 in coupons good at more than a dozen stores, including Kmart and Macy’s, plus percentage discounts at more than two dozen retailers.

* Dean Witter’s Discover: $20 cash rebate.

* American Express Optima: either two dozen bagels with cream cheese and salmon from a New York bagel shop, a 6.5-gallon tin of gourmet popcorn or a dozen long-stemmed roses.

*

Odds and ends: The California Public Utilities Commission is holding a public hearing on proposed rate hikes for Pacific Bell and GTE customers Monday from 9 to 11 a.m. in Room 381 at the Kenneth Hahn Hall of Administration, 500 W. Temple St., Los Angeles. One proposal under consideration would raise basic telephone rates by more than 50%. . . . Salsa has replaced ketchup as the nation’s best-selling condiment, according to the trade publication New Product News, partly due to a surge in the new flavors and brands. . . . The California Office of Traffic Safety reports that cellular phone users placed 600,000 emergency calls last year, helping to nab drunk drivers or report accidents and traffic jams.