Overstock.com has periodically made false statements and misleading ad campaigns that exaggerated the discounts it gave on its lineup.
Utah-based Overstock.com Inc. is currently under attack as district attorneys from different counties in northern California claim the discount retailer has made several misleading and false statements regarding its promotions and deals.
In the 33-page complaint lodged at the Alameda Country Superior Court, the district attorneys asserted that starting from the year 2006, Overstock.com has periodically made false statements and misleading ad campaigns that exaggerated the discounts it gave on its lineup.
The complaint stated: “Overstock’s misrepresentations about its pricing were likely to mislead consumers into believing that [its] prices would always be significantly lower than the prices offered by other merchants for the identical products.”
The lawsuit argues that such misrepresentations discouraged consumers from seeking other stores both online and offline in search for lower prices.
However, Overstock.com general counsel Mark Griffin said although there were flaws in the pricing processes of the company, it still does a good job as a whole.
“The bottom line is that people shop our website in large part because of the prices we offer,” said Griffin. “So we have to be as accurate as possible because we know that our customers can easily check the prices that are available elsewhere.”
According to the lawsuit, the company made it seem like it offered big discounts on its products by stating the product’s highest price on the market and using it to calculate how much discount the company was offering.
“Overstock’s untrue and misleading representations accompanied virtually every product listing on its site beginning no later than Jan. 1, 2006,” said the lawsuit.
Related Overstock.com Articles:
- Overstock.com Being Sued For Misleading Pricing (lockergnome.com)
- 7 Northern Calif district attorneys sue Overstock.com ()
- Overstock.com Responds to Action Filed by Alameda County (prnewswire.com)
