Michaels Settles Lawsuit Over Deceptive Framing Practices

Another blow to Michaels Arts and Crafts Stores! This time, it was over their fake framing discount “sales”.

Michaels, Inc. has agreed to enter into a $1.8 million settlement resulting from allegations of deceptive advertising practices in connection to its “50% Off Custom Framing” coupons brought by New York Attorney General Eric T. Schneiderman.

Though the settlement delivered $1 million in gift cards (and $800,000 in penalties) to public schools throughout New York, it is likely to could open the door to a consumer class action lawsuit over its alleged illegal advertising practices.

The attorney general’s office began investigating Michaels in 2009. According to Attorney General Schneiderman’s allegations, the arts and crafts chain used “50% Off” coupons and other marketing materials to mislead customers into believing they were receiving “steep discounts” on custom framing during this time. A two year investigation by the New York Attorney General uncovered the chain’s DAILY advertised the 50% Off ”discounts”. It is illegal to advertise sales that are never ending, stated the Attorney General.

Attorney General Schneiderman was quoted as saying “For years, Michaels misled consumers into thinking they were receiving huge discounts, when in fact, they were simply paying their regular store price,” AND “Through deceptive advertising practices, this company violated the law and took advantage of hardworking consumers trying to save money.

This is not the first time Michaels has been accused of fraudulent practices. Some of you may remember when they were accused of deliberately compromising customer’s PIN numbers on their debit cards. Customers complained of sums of money being withdrawn from their financial accounts! This led to them having to cough over $5 million in a class action settlement!

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