Hobby Lobby agreed to change its advertising practices, donate school supplies and pay an $85,000 civil penalty to settle an investigation into its alleged deceptive advertising practices, New York Attorney General Eric Schneiderman says in a press release.
It was determined that the craft store allegedly misled customers into thinking they were receiving steep discounts by advertising custom framing, furniture and home decor products as on sale for more than 52 consecutive weeks. Never-ending sales of this nature are in violation of New York’s false advertising law.
As part of Hobby Lobby’s settlement, the company will give nearly 700 upstate New York schools gift cards for school supplies totaling $138,600. Additionally, the company has 60 days to change its advertising practices.
The investigation was initiated in 2013 after the A.G.’s office began tracking marketing materials advertising 50% off and 30% off sales.
A.G. Schneiderman Secures Over $220,000 Settlement From Hobby Lobby Stores In An Investigation of Misleading Advertising [Attorney General Eric Schnedierman]