Attorney General's News Release

November 10, 1994

Nixon unravels deceptive ads by St. Louis rug company

Jefferson City, Mo. — Following an investigation by the Missouri Attorney General’s Office, a St. Louis rug business and its president have agreed to advertise only legitimate price comparison claims and going-out-of-business sales, Attorney General Jay Nixon announced today.

Nixon accused Pirniakan Company and its president, Nadir Pirniakan, of violating state merchandising laws and advertising regulations prohibiting consumer deception. Nixon said the investigation showed unlawful price comparisons to fictitious ticket prices and advertisements of price reductions for inventory added specifically for a going-out-of-business sale.

The consent judgment, entered in St. Louis County Circuit Court, requires Pirniakan and his company to:

• Advertise price comparisons and reductions only that are based on bona fide prices in effect prior to the sale.
• Mark clearly and conspicuously any merchandise that was added to existing inventory for a going-out-of-business sale.
• Clearly disclose that the going-out-of-business sale includes merchandise that was not offered or sold prior to the sale.
• Maintain records substantiating all price comparisons or savings claims for at least one year from the date of the advertisement.
• Pay $3,000 into the Missouri Merchandising Practices Revolving Fund, which pays for consumer education and advocacy programs as well as legal and investigative fees.
• Pay civil penalties up to $3,000 for any violation of the agreement.

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