News Release: For Immediate Release

www.bbbhou.org * bbbinfo@bbbhou.org * Council of BBBs: www.bbb.org *
24-Hour Information: 713-868-9500, (800) 275-3626 (from area code 409 only)

Going-Out-of Business Sales May Be Too Good To Be True

Each year, thousands of businesses close down or move after conducting special clearance sales. To many consumers, going out-of-business sales indicate big savings and limited-time offers. The Better Business Bureau (BBB) warns that in some cases, these sales are highly deceptive. There are times when a store must close its doors and liquidate any remaining stock quickly. However, sales should be limited to a stated period of time and offer only merchandise that is affected by the emergency. Ask to see the retailer’s going out-of-business permit from the County Clerk’s Office to verify that the sale is authentic.

Liquidation, bankruptcy, and going-out-of-business sales usually provide consumers with opportunities for big savings. However, unscrupulous businesses may run "final closing" sales regularly, ringing up big profits because the stores imply a sense of urgency, and consumers believe they are purchasing the merchandise at greatly-reduced prices.

Some stores try to convince consumers they are going-out-of-business over several months, yet they continue to bring in new merchandise. Or a store may post artificially high prices, just so it can claim big savings. For instance, the $500 item marked "half-off" may normally sell for less than $250.

Instead of closing down, a store may reopen under a new name. Once it reopens for business, it may run another going-out-of-business sale shortly thereafter. Another ploy used by deceptive merchants is the going-out-for-business sale, a play on words used to lure customers with the implied promise of savings.

While big savings may be found at a legitimate “everything must go” sale, such savings shouldn't automatically be assumed. Consumers should read warranties carefully to determine where to return merchandise if problems arise.

By comparing prices and understanding the real meaning of advertising promotions, consumers can avoid misleading sales pitches and locate real bargains. Advertisers and consumers can contact the BBB at 713-868-9500 or 1-800-275-3626 to order a free copy of the BBB’s Advertising Guidelines for Business. Fraudulent going out-of-business sales can be reported to the Texas Attorney General and the BBB.

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