Attorney General's News Release

March 6, 2007

Nixon obtains court order to stop “going-out-of-business” sale in Springfield that had been going on since last July

Jefferson City, Mo.— A Springfield jewelry and video store that advertised and conducted a “going-out-of-business” sale for at least eight months will comply with state consumer protection laws and pay $1,000 to the state, under a court order obtained today by Attorney General Jay Nixon. Last Friday, Nixon filed a lawsuit in Greene County Circuit Court against James C. Andrews, who does business as Gold Exchange, located at 1027 W. Kearney.

Under the consent injunction and final judgment, Andrews admitted he improperly held the going-out-of business sale and failed to register the fictitious name “Gold Exchange” with the Secretary of State's office. Nixon's lawsuit charged that Andrews did not register the going-out-of-business sale with the Attorney General's Office, as required by law, and that the sale had been advertised and conducted since at least July 1, 2006. In addition, Nixon said, Andrews failed to register “Gold Exchange” as a fictitious business name with the Secretary of State, as required by law.

State law (407.800, RSMo) requires anyone advertising or conducting a going-out-of-business sale to notify the Attorney General's Office 10 days prior to the sale and submit an inventory of items to be offered during the sale. The law says the inventory cannot be supplemented after the sale begins, and that the going-out-of-business sale can't last longer than 60 days unless an extension is granted by the Attorney General.

According to the court order, the defendants are barred from further violations of the law pertaining to going-out-of-business sales or from conducting any business in a name that is not registered with the Secretary of State. The defendants are also required to pay $1,000 to the state to cover the costs of the investigation, prosecution and enforcement of the case. The defendants would also be ordered to pay a civil penalty of up to $5,000 per violation if found to be in violation of the consent injunction and final judgment.

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