Joe Doyle, Administrator of the Governor’s Office of Consumer Affairs (OCA), has announced that the agency has entered into settlements with three different companies who allegedly held going-out-of-business sales that were not in compliance with Georgia law.
“What we see occurring,” says Mr. Doyle, “is companies that have no intention of closing up shop holding going-out-of-business sales as a strategy to increase store traffic.” Not only has the agency seen going-out-of-business sales linger on for many months, but some stores have even augmented their inventory during a “liquidation sale”. According to Georgia law, a going-out-of-business sale may not last longer than 90 days, and at the end of that 90-day period the store may no longer conduct business of that nature at that location.
OCA has entered into settlements with the following companies for allegedly holding illegitimate going-out-of-business sales:
Shinco Trading International, Inc. d/b/a Cyrus Fine Rugs operated a retail rug dealership in Atlanta. Before shutting its doors, the company allegedly conducted a “going-out-of-business” sale for nearly 6 months. In settlement of this matter, the company has agreed to cease operating its retail business and to reimburse OCA $25,000 for administrative expenses.
Furniture World of Dallas, Inc.,a retail furniture store in Dallas, Georgia, allegedly ran a going out of business sale for over 4 months. OCA further alleged that the business advertised a “TOTAL LIQUIDATION CLOSEOUT”, while at the same time augmenting its inventory with furniture from an affiliate store. Per the terms of the settlement, the company is required to cease doing business and to reimburse the agency $10,000 for administrative expenses.
Ben Haverty’s Furniture-Xpress, LLC located in Chamblee, Georgia has also been the subject of an OCA investigation. The agency alleges that the company ran a going-out-of-business sale for longer than 90 days; that when investigators put the business on notice, it reopened the store as an “outlet” but continued to use the word “liquidation” on receipts and other literature; and that it conducted deceptive sales price comparisons, including wording such as “Emergency Liquidation Was $___, Now $___”, when the original prices referred to were not the actual former prices. The company has entered into a settlement with the agency, in which it has agreed to modify its sales practices to comply with the Fair Business Practices Act and to reimburse OCA $5,000 for administrative and legal expenses.
“When companies hold illegal going-out-of-business sales, they hurt ethical businesses by drawing away customers who are responding to false promises of price reductions and time-limited bargains, “ says Mr. Doyle. “And consumers are victimized because they end up paying higher prices for merchandise that they believe has been greatly discounted. The Governor’s Office of Consumer Affairs will continue to take action against companies who conduct these illegitimate sales.”
To avoid being taken advantage of by illegitimate going-out-of-business sales, the Governor’s Office of Consumer Affairs recommends that consumers conduct their own price comparisons to be certain that they are, in fact, getting a discounted price. If you notice that a company has been conducting a going-out-of-business sale for more than 90 days, contact the Governor’s Office of Consumer Affairs at 404-651-8600 or 800-869-1123.
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Thursday, June 4, 2009
Governor's Office of Consumer Affairs Cracks Down on Illegal Going-Out-Of-Business Sales
Thursday, October 9, 2008
J.D. Power and Associates Reports: U.S. New-Vehicle Retail Sales in 2008 Forecasted to Decrease by 2 Million Units Below 2007 Levels
J.D. Power and Associates Reports: U.S. New-Vehicle Retail Sales in 2008 Forecasted to Decrease by 2 Million Units Below 2007 Levels; Total Light Vehicle Forecast Revised Down to 13.6 Million Units for 2008, 13.2 Million Units for 2009
New Light-Vehicle Sales in Chinese, Indian and European Markets Also Anticipated to Slow Dramatically
/PRNewswire/ -- As the U.S. new-vehicle retail market continues to deteriorate, new-vehicle retail sales are projected to end 2008 at 10.8 million units, which is 2 million units below 2007 sales, according to J.D. Power and Associates.
Approximately two-thirds of the decline in retail sales -- which are reflective of actual consumer behavior in the new-vehicle marketplace -- can be attributed to consumers delaying vehicle purchases. On average, consumers are keeping their vehicles 4 months longer in 2008 compared with 2007 -- up from 67 months to 71 months. The remaining one-third of the volume decline comes from reduced leasing activity. Additionally, fleet sales are expected to decline to 2.8 million units in 2008, which is well below the 3.3 million unit level achieved in 2007.
"Buyers are both voluntarily and involuntarily exiting the U.S. new-vehicle market," said Jeff Schuster, executive director of automotive forecasting for J.D. Power and Associates. "The additional decline in expected vehicle sales is a function of growing concerns around availability of credit and leasing, declines in vehicle equity and general economic stress."
The current turmoil and financial crisis adds risk to the 2008 forecast of up to 200,000 units, as it is unclear how consumers will respond in the fourth quarter.
Total U.S. Light-Vehicle(1) Market
J.D. Power and Associates forecasts total new light-vehicle sales -- which includes both retail and fleet sales -- to drop to 13.6 million units in 2008, registering a 16 percent decline from 16.1 million units in 2007.
Market uncertainty has also led to a downward revision of the J.D. Power and Associates 2009 U.S. light-vehicle forecast. Total new light-vehicle sales are expected to drop to 13.2 million units in 2009, with the retail sales market declining to 10.6 million units.
"Falling trade-in equity, fewer leasing options, credit market restructuring and the increased migration to used vehicles are all putting added pressure on the U.S. new-vehicle sales market in 2009," said Schuster. "Any truly pronounced recovery appears to be more than 18 months away."
China Light-Vehicle Market
Slowing within China's automotive market is projected to intensify during the fourth quarter of 2008, and will likely lead to a downward revision for 2009. Despite the slowing, light-vehicle sales -- including passenger vehicle and light commercial vehicle segments -- in China are expected to reach 8.9 million units in 2008, which marks an increase of 9.7 percent from 2007. However, the projected growth rate for the China automotive market in 2008 is less than one-half of the 24.1 percent growth achieved in 2007.
Indian Light-Vehicle Market
The light-vehicle sales forecast has also been reduced for the India market, down 6 percent from the original forecast of 1.9 million units to 1.8 million units for 2008. The 5.1 percent growth rate forecasted for 2008 is considerably less than the increases demonstrated in 2007 (16%) and 2006 (21%).
European Light-Vehicle Market
Light-vehicle sales in Europe are expected to fall to 21.3 million units in 2008, marking a 3.1 percent decline from sales in 2007. Within Western Europe, sales are forecasted to decline to 15.6 million -- a decrease of 7.5 percent from 2007. While sales in Eastern Europe are expected to increase to 5.8 million in 2008 -- up 11.3 percent from 2007, growth within the region is slowing considerably.
"While the global automotive industry is clearly experiencing a slowdown in 2008, the global market in 2009 may experience an outright collapse," said Schuster. "While mature markets are being impacted more severely than emerging markets, no country or region is completely immune to the turmoil."
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Thursday, September 4, 2008
New Cars Show Signs of Sales Strength in August '08
PRNewswire/ -- The Toyota Camry and Honda Accord saw a rise in views of 34% and 39% respectively in August 2008 compared to August 2007, enough to give them the first and second place slots as the most-viewed new vehicles on AutoTrader.com according to the just released August 2008 AutoTrader.com TrendEngine report.
Views for cars on AutoTrader.com generally increased year-over-year from 2007, and despite dropping gas prices, trucks largely continued the downward trend in views begun earlier this year.
The full-size Ford F-150 pick-up was one of the few trucks to show signs of improvement, with an uptick of 18.45% in views as consumers searched for deals. Ford is currently offering sizable incentives on remaining 2008 F-150 inventory in preparation for the September launch of an all-new 2009 model.
Compact crossovers -- car-based vehicles designed to offer a higher driving position without the drawbacks of truck-based vehicles -- had seen their sales suffering alongside traditional SUVs during this past June and July. August saw the beginning of a rebound for these vehicles, as was evidenced by the 7.12% year-over-year increase in views for the Honda CR-V and the 19.36% year-over-year increase in views for the Toyota RAV4.
"Though much has been made of the rise of small cars, the biggest beneficiaries of rising gas prices have been midsize sedans and compact crossovers, the latter having served to replace the traditional family station wagon and larger SUVs," said AutoTrader.com President and CEO Chip Perry. "As manufacturers reallocate resources away from full-size pick-ups and traditional SUVs, our market demand data suggests they would be wise to pay the most attention to these vehicles which make up the heart of the market."
Among smaller cars, two larger gainers were the Toyota Corolla and Ford Focus, both of which continued to enjoy the success of recent redesigns. The Corolla improved its position on the most-viewed list from 12th in August 2007 to 7th this year, with views up 43%, while the Focus moved from 32nd to 19th, as views increased 63% in August 2008 compared to August 2007.
"Today's compact cars offer significantly more in terms of value, features and, most importantly, space, than what consumers traditionally think of when they consider 'small' cars," said Perry. "The most popular vehicles in this segment, such as the Civic, Corolla and Focus, offer an ideal mix of room and comfort for not only single people, but even small families."
The new Chevy Malibu continues to also generate dramatic interest. In August '08, views of the Malibu were up 279% compared to views in August 07, following on a 293% surge in views of the Malibu in July '08 compared to July '07. This car continues to benefit from strong marketing and consumer interest.
Truck Resale Values Continue to Plummet
The used car market continued to show overall softness, especially in terms of pick-up trucks and SUVs. While the asking prices among cars in the top 20 most-viewed used vehicles were generally flat, or in the case of the small cars such as the Honda Civic and Toyota Corolla, up slightly, truck asking prices recorded double-digit year-over-year declines. The asking price for used Ford F-150s took the largest hit, recording a drop of 17.56%, or $3,479 on average. The once-popular Chevrolet Tahoe was also not immune, with asking prices for used versions of the full-size SUV dropping 17.26%, or $4,104 on average.
"For buyers who need a pick-up or SUV, whether for work or for personal use, this is definitely a great time to buy," added Perry. "Manufacturers are offering strong incentives on new trucks, while records of inventories for used models allow consumers the chance to score a truly great deal."
A "view" on AutoTrader.com is the display of the details page of a specific automobile, which includes information, photographs and contact information for that vehicle, and is thus a stronger indication of consumer interest in that model than searching broadly for information on that make and model.
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