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Circuit City Docked for Rain Checks

6 Jun, 2001 By: Hive News

Michigan Attorney General Jennifer Granholm is threatening a lawsuit against the Circuit City electronicchain, reported the Associated Press, saying the company failed to provide customers with rain checksfor sale items.

Granholm said Wednesday that Virginia-based Circuit City Stores Inc. violated a state consumer protection law at its 23 Michigan stores when it wouldn't give rain checks for specially advertised items that weren't available for purchase during the saleperiod.

When Circuit City was notified of consumer complaints, Granholm saidthe company responded that rain checks weren't available on limited quantity sales or clearance sales.

"Luring customers to a store using bargain advertising for a product that's not in stock, then relying on them to buy a higher-priced substitute simply isn't playing fair," Granholm said.

Granholm filed a Notice of Intended Action, which gives Circuit City 10 days to respond and begin settlement negotiations. If no settlement is reached, the state could take Circuit City to court, said the AP.

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