Chain is hit with two class-action lawsuits after it raised the top price of goods to 99.99 cents from 99 cents.
LOS ANGELES, CA - What's in a name? For the 99 Cents Only Stores when its top priced items sell for 99.99 cents (up from 99 cents) ?" a lot of legal headache, the Los Angeles Times reports.
Two years ago, the retailer raised the price of its goods to 99.99 cents, up from 99 cents, a move that riled some customers (or at least so say their attorneys) who said they were essentially paying $1 for those items, since U.S. currency makes it impossible to pay 99.99 cents for an item. As a result, the company is facing two class-action lawsuits that were filed in Los Angeles County Superior Court earlier this month, alleging unfair and deceptive business practices and misleading advertising.
"If they call themselves 99 Cents Only, it should be 99 cents," said Dan Callahan, an Orange County lawyer. "We had a survey done before we filed the lawsuit to see how many people thought they were paying 99 cents, and it was just about unanimous that nobody realized that they were paying more than 99 cents. The people who go to that store are typically lower income or seniors, so the people they're taking advantage of are the ones least able to discern the difference and least able to afford it."
In response, Eric Schiffer, CEO of 99 Cents Only, said he didn't think there was anything wrong with the company's advertising, maintaining that it "took every possible effort and avenue to basically bombard the consumer about our increase."
"We changed all the signs, we have a large poster in the window of every store explaining the increase, we put it in our ads in the newspaper, we put it on the radio," he said. "Never mind the fact that the price increase was a very tiny amount, as we all know. So I don't think consumers were misled."
The lawsuits seek unspecified monetary damages and contend 99 Cents Only should have been more clear in its advertising. A judge has yet to certify the class-action status of the suits.
Advertisement
.gif "Polar King Ad")
Advertisement
Advertisement
.png "Talent Insights Dashboard Ad")