Suit claims Jordan's promotion a lottery
By Clint Engel -- Furniture Today, August 19, 2007
Boston — A man once convicted of running an illegal lottery has sued Jordan's Furniture on the same charge, claiming its promotion promising to give away furniture if the Boston Red Sox win the World Series is against the law.
The suit could call into question the legality of other similar promotions, which at least three furniture retailers have tried in the past year.
Joseph Frate filed the complaint in a state court last month, seeking treble damages, or triple the value of the payments made by Jordan's customers during the promotion period of March 7 through April 16.
That's when the retailer, the official furniture store of baseball's Boston Red Sox, advertised its "Monster Deal," saying purchases made during that period would be free if the Sox win the Series this year.
Jordan's leader, Eliot Tatelman, said when the event occurred that it was insured for more than $20 million, and that he expected sales to top that mark. If that happened, Frate's damages request would be over $60 million.
"Nothing in the lawsuit would in any way affect Jordan's commitment to honor the terms of the promotion," said Heather Copelas, spokeswoman for the four-store, Taunton, Mass.-based retailer, part of Berkshire Hathaway's furniture division.
She declined additional comment. In earlier news stories, Tatelman said that attorneys who reviewed the promotion determined it was legal.
Frate was not a Jordan's customer but filed the complaint under a law that essentially says participants in a lottery have three months from the date of purchase to sue. After that time has passed, the law allows third parties to sue.
In his filing, Frate asserts that a lottery exists when a scheme or promotion includes a price, a prize and the element of chance, apparently suggesting the prize in Jordan's case would be the consumer purchases that could be refunded if the Red Sox win.
A report in the Boston Globe newspaper said Frate was convicted in 1987 of operating an illegal lottery and possessing gambling devices resembling slot machines, in which customers could insert a coin, see flashing lights and get electronically generated numbers that could then be used to play the official state lottery. He was sentenced to two years probation and a $300 fine.
Frate's complaint said Jordan's promotion was "more egregious" because it required a purchase in order to participate. The complaint also noted the state hasn't pursued action against Jordan's, unlike with Frate.
"The Commonwealth's disparate treatment (of the cases) might well be explained by the fact that Jordan's is a large corporation that is overwhelmingly popular with the public, as opposed to Mr. Frate, who was an ordinary citizen — which sends a message to the public that Jordan's is above the law," it said.
At press time, Jordan's had not filed a response.
Jordan’s winners won’t pay extra income tax
03/10/2008Suit claims Jordan’s promotion a lottery
08/15/2007No free furniture for Red Sox fans
10/21/2008If Red Sox win, so do Jordan’s customers
10/22/2007
