Hobby Lobby stores in New York advertised steep discounts that were a little too good to be true. The chain has agreed to stop running deceptive advertising and contribute $138,600 in supplies to public schools near Hobby Lobby stores in upstate New York.
The settlement applies only to stores in the state of New York.
“When companies mislead customers by advertising never-ending sales, our office will hold them accountable,” said state Attorney General Eric T. Schneiderman. “Ultimately, a permanent sale is no sale at all.”
The investigation began in 2013, when Schneiderman’s office began tracking marketing materials advertising 50% off and 30% off sales. Hobby Lobby advertised its custom framing, furniture, and home décor products as sale items for more than 52 consecutive weeks.
The investigation determined that Hobby Lobby violated New York’s General Business Law (350-D) for False Advertising. Sales that are never-ending are in violation of the false advertising law.
As part of its settlement of the charges, the company will change its advertising practices over the next 60 days, contribute $138,600 in supplies to public schools near Hobby Lobby stores in Upstate New York, and pay $85,000 in civil penalties and other costs.
Number of Schools Eligible to Receive Gift Cards for Student Supplies: