909 S McCord Rd at Angola,  Holland, Oh 43528     419-868-7101

 
Sept. 19th, 2011
Michaels Fined for False Advertising

""For years, Michaels duped consumers into thinking they were receiving huge discounts, when in fact, they were simply paying the regular store price," said Attorney General Schneiderman."

By: Office of the Attorney General New York State


A.G. SCHNEIDERMAN SECURES $1.8 MILLION FROM MICHAELS STORES FOR MISLEADING CONSUMERS

AG's Investigation Of Continuous "Sale" Secures $1.8 Million, Including $1 Million For Public Schools Statewide

Schneiderman: For Years, Consumers Were Deceived Into Thinking They Were Receiving Huge Discounts When They Were Paying Regular Prices

[En Español

ROCHESTER - As students and teachers returned to school this month, Attorney General Eric T. Schneiderman today announced that retail chain Michaels Stores, Inc. has agreed to enter a $1.8 million settlement for engaging in deceptive advertising practices by misleading consumers into thinking they were receiving steep discounts over a two year period. As part of the settlement, the company will change its advertising practices and contribute $1 million in art and craft supplies to public schools throughout New York State, in addition to $800,000 in civil penalties.

"For years, Michaels duped consumers into thinking they were receiving huge discounts, when in fact, they were simply paying the regular store price," said Attorney General Schneiderman. "Through deceptive advertising practices, this company violated the law and took advantage of hardworking consumers trying to save money. In addition to the civil penalties, the company is paying for their actions by providing $1 million in school supplies for hundreds of school districts statewide."

Michaels Stores, Inc. describes itself as a specialty retailer of arts, crafts, scrapbooking and custom framing. Its 48 stores throughout New York State are frequented by parents, students and teachers to purchase school supplies.

As a result of the Attorney General's settlement, Michaels will be required to give back to the public schools in communities which their stores are located. Today's action will benefit as many as 724 school districts throughout the state. The schools are set to receive $1 million in gift cards to purchase supplies.

The investigation began in 2009 when the Attorney General's office began tracking the 50 percent off marketing materials where Michaels advertised its "Custom Framing" as a sale product for at least 104 consecutive weeks. The law prohibits sales that are never ending. Investigators throughout the state collected newspaper flyers, online flyers, in-store banners and signs advertising the custom framing. Michaels advertised in at least one of these forms every day for two years. The ads stated that custom framing was either at least 50 percent off or a certain dollar amount off.

Michaels has agreed to settle the investigation by paying civil penalties of $800,000 in addition to the $1 million to New York's public schools for violating General Business Law (350-D) for False Advertising.

The case was handled by Assistant Attorney General Benjamin Bruce under the direction of Assistant Attorney General In-Charge of the Rochester office, Debra Martin and Executive Deputy Attorney General for Regional Affairs, Martin J. Mack.

Attachment:
Eligible School Districts Ex A to Distribution Agreement



Until the penalties are large enough, it seems that they will never stop. Consumers need to express their disapproval with their pocketbooks.

Michael's Stores in Ohio - Class Action Lawsuit
MICHAELS STORES INC - FORM 10-Q - May 24, 2012

Pricing and Promotion



On April 30, 2012, William J. Henry, a consumer, filed a purported class action proceeding against Michaels Stores, Inc. in the Court of Common Pleas, Lake County, Ohio , on behalf of himself and all similarly-situated Ohio consumers who purchased framing products and/or services from Michaels during weeks where Michaels was advertising a discount for framing products and/or services. The lawsuit alleges that Michaels advertised discounts on its framing products and/or services without actually providing a discount to its customers since Michaels has a perpetual sale on framing products and/or services in its stores. The plaintiff claims violation of Ohio law ORC 1345.01 et seq., breach of contract, unjust enrichment and fraud. The plaintiff has alleged damages, penalties and fees not to exceed $5 million, exclusive of interest and costs. We do not believe the resolution of this lawsuit will have a material effect on our consolidated financial statements.

Read more about it in their report - http://www.faqs.org/sec-filings/120524/MICHAELS-STORES-INC_10-Q/#TableOfContents
Updated: Thursday, June 12 2014, 07:33 PM EDT ROCHESTER - Hobby Lobby has reached a settlement with the Attorney Generals office after an investigation into alleged deceptive advertising practices. The investigation, which began in 2013, shows Attorney General Schneiderman’s office had been tracking marketing materials advertising 50 percent off and 30 percent off sales. After a year of tracking, Hobby Lobby was found in violation of a business law for false advertising. Hobby Lobby, as part of the settlement, will be required to give nearly 700 schools a total of $138,600 in gift cards for supplies in addition to paying civil penalties. 48 schools in Albany County, 35 in Schenectady County, as well as 20 in Rensselaer, 14 in Saratoga Counties will be eligible to receive gift cards towards student supplies.

Read More at: http://www.cbs6albany.com/news/features/top-story/stories/hobby-lobby-give-supplies-schools-settlement-ag-office-16906.shtml?wap=0

 

Updated: Thursday, June 12 2014, 07:33 PM EDT ROCHESTER - Hobby Lobby has reached a settlement with the Attorney Generals office after an investigation into alleged deceptive advertising practices. The investigation, which began in 2013, shows Attorney General Schneiderman’s office had been tracking marketing materials advertising 50 percent off and 30 percent off sales. After a year of tracking, Hobby Lobby was found in violation of a business law for false advertising. Hobby Lobby, as part of the settlement, will be required to give nearly 700 schools a total of $138,600 in gift cards for supplies in addition to paying civil penalties. 48 schools in Albany County, 35 in Schenectady County, as well as 20 in Rensselaer, 14 in Saratoga Counties will be eligible to receive gift cards towards student supplies.

Read More at: http://www.cbs6albany.com/news/features/top-story/stories/hobby-lobby-give-supplies-schools-settlement-ag-office-16906.shtml?wap=0
Thursday, June 12 2014, 07:33 PM EDT ROCHESTER - Hobby Lobby has reached a settlement with the Attorney Generals office after an investigation into alleged deceptive advertising practices.

Read More at: http://www.cbs6albany.com/news/features/top-story/stories/hobby-lobby-give-supplies-schools-settlement-ag-office-16906.shtml?wap=0
Updated: Thursday, June 12 2014, 07:33 PM EDT ROCHESTER - Hobby Lobby has reached a settlement with the Attorney Generals office after an investigation into alleged deceptive advertising practices. Read More Here

The investigation, which began in 2013, shows Attorney General Schneiderman’s office had been tracking marketing materials advertising 50 percent off and 30 percent off sales.  After a year of tracking, Hobby Lobby was found in violation of a business law for false advertising. Hobby Lobby, as part of the settlement, will be required to give nearly 700 schools a total of $138,600 in gift cards for supplies in addition to paying civil penalties. 48 schools in Albany County, 35 in Schenectady County, as well as 20 in Rensselaer, 14 in Saratoga Counties will be eligible to receive gift cards towards student supplies.



 


 

 

“John does absolutely wonderful work. He has a great eye and attention to detail.”
Renay Conlin , General & Artistic Director , Toledo Opera
June 29, 2009
 

“John is a meticulous custom framer who's attention to detail shows not only in his craftsmanship of framing skills, but also in the manner in which he operates his retail business, Frame Shop Art Gallery & Gifts. Although a frame shop owner for only the past 5 years, John brings to the custom framing industry similar mechanical and design skills of 20 years in the Kitchen Design industry. His commitment to serving his customers well is illustrated in his approach to embracing technology and innovation within his frame shop. John is a active participant in his local Professional Picture Framing Association Chapter. John has an open attitude towards working and networking with fellow retailers and business people regardless to locale, while he continues to stride in setting his own business ahead.”
John Ranes II , Owner , The Frame Workshop of Appleton, Inc.
April 4, 2009

 

“John has provided quality framing for our organization, that has far exceeded our expectations. He also provides many different products/services that can enhance, display and preserve pictures, awards and various mementos.”
Keith Daly, April 9th. 2009