Better Business Bureau has questioned Élan Contemporary Home Furnishings current “going out of business sale” advertising as featuring bogus bargains, not from their own prior inventory. When asked to respond to BBB’s request that Élan substantiate that it’s “going out of business sale” merchandise is limited to past regular inventory, a store owner answered by saying, “What does it matter?”
Jim Hegarty, BBB president, met with company officials after an Oriental rug salesperson, working in the store, acknowledged to him that the rugs advertised had been “stuffed” into the store’s inventory. He told Hegarty that several hundred rugs were brought in from New York by the firm conducting the sale for Élan.
BBB advised the owners that the truth about the origin of the merchandise matters to BBB and to the customers of Élan. The fact that this sale reflects the advertiser’s intent to close out its regular inventory at bargain prices before closing its doors, not adding new goods to the mix, is deceptive, according to BBB.
Hegarty explained that the classic deception associated with “going out of business sale” advertising is “stuffing” a store with new merchandise to take advantage of the consumers’ perception that a store in distress is offering its regular merchandise at greatly discounted prices. “Consumers are drawn to such sales like moths to a flame, and if the store is ‘stuffed’ they can get burned,” he said.
Hegarty stated, “Élan Contemporary Home Furnishings has maintained an excellent record with BBB over the years. The company earned a superior rating as a BBB Accredited Business and has maintained a very good record of customer service. It is regrettable that its practices surrounding what are said to be its final days in business are not consistent with that record.”
BBB has suspended the company’s Accredited Business status, revised the company’s BBB rating and amended its public BBB Report to reflect the issuance of this Alert regarding the practices associated with the company’s “going out of business sale.”
Élan officials advised BBB that it’s “going out of business sale,” which began around June 15, 2009, is scheduled to end around October 15, 2009.
The Better Business Bureau,Inc.(BBB)has been serving the region for more than 70 years and is a private, nonprofit organization dedicated to promoting trust between consumers and the business community. Accountability, education and recognition are key components to the BBB's mission of fostering trust in the marketplace. Today, the BBB has a membership of approximately 7,000 companies in Nebraska, South Dakota and southwest Iowa. Consumers are encouraged to report complaints and possible scams to the BBB. The BBB annually honors organizations and companies that demonstrate exceptional business ethics with the prestigious Integrity Award. As a matter of policy, the BBB does not endorse any product, service or company. For more information, please visit www.bbb.org and “Start With Trust.”