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The 99 Cents Only Stores rule. These idiots should be glad they exist.
99¢ Only Stores sued over price increase
by HANG NGUYEN, Retail Reporter
A class-action lawsuit was recently filed against 99¢ Only Stores regarding the price increase it implemented in September 2008.
Due to inflation and higher fuel prices, 99¢ Only Stores raised its top price from 99 cents to 99.99 cents. Of its 273 stores, 18 of those are in Orange County from Brea to San Clemente.
“99¢ Only buried the increased price in extremely small text in its ads and price tags,” according to the lawsuit. “Because U.S. currency does not recognize .99 of a penny, customers who did notice the change, were/are led to believe that it is simply another marketing gimmick like 99¢ Only’s claim that it is open ‘9 days a week.’ 99¢ Only’s pricing is deceptive and is likely to mislead consumers into believing they are paying $0.99 for an item when in actuality, the consumer is paying $1.00 for the item.”
Eric Schiffer, CEO for 99¢ Only, said, “We issued a press release to announce the price increase. We held a press conference. We changed signs in the stores. We still have posters (today) announcing the price increase. We have bombarded the customer with it.”
Schiffer said he is only aware of one customer who didn’t know about the price increase until after purchasing a watermelon. Schiffer said 99¢ Only offered to take it back, but the customer decided to keep it, saying it was still a good deal.
A judge will decide if the lawsuit can proceed as a class action. The monetary compensation the lawsuit is asking for is unspecified at this time, said Ed Susolik, attorney for Callahan & Blaine, the Santa Ana-based law firm representing the plaintiffs. “Basically, it would be the unfair profits from the extra .99 cent, which we understand is about $12.87 million per year,” he said. ”We are also discussing possible settlement.”
Schiffer said the price increase was the first for the retailer that’s been in business for 28 years. “How many other retailers can say that?”
Will the City of Commerce-based chain increase prices again? “California is a very expensive state to do business,” Schiffer said. “If the cost of business continues to go up, of course we have to look at prices again.”
99¢ Only Stores sued over price increase
by HANG NGUYEN, Retail Reporter
A class-action lawsuit was recently filed against 99¢ Only Stores regarding the price increase it implemented in September 2008.
Due to inflation and higher fuel prices, 99¢ Only Stores raised its top price from 99 cents to 99.99 cents. Of its 273 stores, 18 of those are in Orange County from Brea to San Clemente.
“99¢ Only buried the increased price in extremely small text in its ads and price tags,” according to the lawsuit. “Because U.S. currency does not recognize .99 of a penny, customers who did notice the change, were/are led to believe that it is simply another marketing gimmick like 99¢ Only’s claim that it is open ‘9 days a week.’ 99¢ Only’s pricing is deceptive and is likely to mislead consumers into believing they are paying $0.99 for an item when in actuality, the consumer is paying $1.00 for the item.”
Eric Schiffer, CEO for 99¢ Only, said, “We issued a press release to announce the price increase. We held a press conference. We changed signs in the stores. We still have posters (today) announcing the price increase. We have bombarded the customer with it.”
Schiffer said he is only aware of one customer who didn’t know about the price increase until after purchasing a watermelon. Schiffer said 99¢ Only offered to take it back, but the customer decided to keep it, saying it was still a good deal.
A judge will decide if the lawsuit can proceed as a class action. The monetary compensation the lawsuit is asking for is unspecified at this time, said Ed Susolik, attorney for Callahan & Blaine, the Santa Ana-based law firm representing the plaintiffs. “Basically, it would be the unfair profits from the extra .99 cent, which we understand is about $12.87 million per year,” he said. ”We are also discussing possible settlement.”
Schiffer said the price increase was the first for the retailer that’s been in business for 28 years. “How many other retailers can say that?”
Will the City of Commerce-based chain increase prices again? “California is a very expensive state to do business,” Schiffer said. “If the cost of business continues to go up, of course we have to look at prices again.”
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