California-based lighting and furniture company Lamps Plus, Inc. has consented to pay a $4.1 million settlement after allegations of deceptive pricing and false advertising practices came to light, according to a release by the Los Angeles County District Attorney’s Office. The company faced accusations of falsely advertising sales and discounts, price match guarantees, and misleading price comparisons.
Investigations conducted by several Southern California district attorney offices uncovered that the company purportedly practiced these deceptive strategies since at least March 2017. The settlement, which was hashed out on Sept. 20 without any admission of wrongdoing by Lamps Plus, mandates the payment of $3.8 million in civil penalties and an additional $300,000 to cover investigative costs. During the investigation, conducted by the Los Angeles, Riverside, San Bernardino, and San Diego county district attorney’s offices, the company is said to have cooperated with officials.
"Californians have a right to protection from unscrupulous companies seeking to trick hardworking individuals into shopping at their stores with deceptive pricing," Los Angeles County District Attorney George Gascón stated in a news report by the district attorney’s website. This reinforces the commitment to consumer rights violations and the ongoing efforts to hold corporations accountable.
Additionally, Lamps Plus is prohibited from offering their "120 percent price protection policy" and from falsely advertising any price match guarantee. Riverside County District Attorney Mike Hestrin, in a statement obtained by the Riverside County District Attorney’s Office website, emphasized the importance of the judgment in promoting honest business practices and ensuring that consumers receive fair value for their spending. As part of the legal resolution, the company's false advertising methods and unfair competition strategies, including deceptive "Compare At" pricing and a lack of clear disclosures regarding price protection policies, have been brought to an abrupt halt.
This legal action is a stark reminder for businesses operating within the jurisdiction that adherence to consumer protection laws is not merely voluntary, but an enforceable standard of conduct. Gascón affirmed that his office, alongside the partner counties, "will continue to tirelessly fight for consumers" to guard against deceptive corporate behavior.
