Ohio taking Craftmatic to court
David Perry -- Furniture Today, January 4, 2004
COLUMBUS, Ohio — Ohio Attorney General Jim Petro is suing adjustable bed marketer Craftmatic over alleged false advertising and high-pressure sales tactics.
Petro filed a five-count complaint against Craftmatic Organization and J. KAZ Inc., doing business as Craftmatic of Pittsburgh. The complaint asserts that Craftmatic targeted Ohio's vulnerable populations, the elderly and the mentally incompetent. It alleges violations of the Consumer Sales Practices Act for high-pressure sales tactics, illegal pricing and false advertising.
Charles Chernofsky, an attorney for Craftmatic, said the charges are untrue and the suit "is totally unfounded."
"Preying on Ohio's vulnerable populations is unconscionable," Petro said. "We want to make sure no other Ohioan is victimized by this type of false advertising and high-pressure sales tactics."
Chernofsky said the company doesn't target any specific group, noting the company advertises on television and "everybody watches television." He said the advertising pictures young and older consumers and that consumers of all ages respond.
Petro said consumer complaints prompted the investigation of Craftmatic. The civil complaint — which seeks to have the companies comply with Ohio law, pay consumers restitution, and pay civil penalties — alleges in part that:
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The companies made illegal price comparisons in the form of deceptive price reductions, since Craftmatic beds did not have a fixed price to begin with.
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Consumers, including many from vulnerable populations, were targeted by Craftmatic representatives, who utilized lengthy, high-pressure sales presentations.
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The companies made illegal price comparisons with other companies' beds, which are of higher quality and/or lower price than Craftmatic beds.
Chernofsky said he reviews Craftmatic's advertising carefully and "it is legal." He also noted that the Craftmatic contract gives consumers three business days to cancel the transaction and get their money back, a feature that some consumers use.
He said Craftmatic has sold about 700,000 beds worldwide, "so someone must be satisfied" with the products.
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