An appeals court affirmed a $6.8 million judgment against Overstock.com for false advertising, overstating savings to consumers.
The case was brought by the consumer law division of Sonoma County’s district attorney and tried in 2013 in an Alameda court. Marin, Napa, Monterey, Santa Clara, Santa Cruz and Shasta counties joined in the lawsuit.
The main issue was Overstock’s use of “advertised reference prices,” according to the district attorney. Overstock labeled these prices as “list price” or “compare” prices, posting such prices next to its sales price while purporting a discount.
“The trial court found that Overstock had consistently used advertised reference prices created by various methods that were designed to overstate the amount of savings to be enjoyed by shopping on the Overstock site,” the district attorney said. Sonoma County’s district attorney is Jill Ravitch.
The appellate court ruling was issued on June 2, affirming the trial court decision.
James Dunn covers technology, biotech, law, the food industry, and banking and finance. Reach him at: firstname.lastname@example.org or 707-521-4257