Attorney General's News Release

October 11, 1996

Five St. Louis carpet retailers agree to pay $45,000 total, comply with ad rules after Nixon alleges customers misled

Jefferson City, Mo. — Five major St. Louis-area carpet retailers have agreed to pay a total of $45,000 to the state and comply with state advertising rules, following an investigation by Missouri Attorney General Jay Nixon.

Nixon had alleged that the five retailers — New York Carpet World, Color Tile, Advance Carpet Co. and two franchise operators of Georgia Carpet Outlets — violated Missouri merchandising practices laws by making savings claims that were not accurate and, in some cases, running continuous sales.

“Consumers don't benefit if comparison claims of savings are based on phony prices or if advertised sales really aren't sales at all,” Nixon said. “This agreement sends a clear message to retailers: comply with the advertising laws by offering valid savings to customers.”

Under the court orders entered today in St. Louis City and Cole and St. Louis counties, each retailer agreed to comply with state consumer laws in their advertising and to notify their managers of the agreement.

In addition, four of the retailers will pay a total of $45,000 to the state:

• New York Carpet World - $30,000.
• Advance Carpet Co. - $5,000.
• Gary M. Busenbark, who does business as Georgia Carpet Outlets - $5,000.
• NICO of St. Louis Inc., which does business as Georgia Carpet Outlets - $5,000.

The $45,000 will be placed in the Missouri Merchandising Practices Revolving Fund to pay for attorney fees and the costs of the investigation.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818