Hobby Lobby sued over promotional price practices

[clueliss]

http://www.cbsnews.com/news/hobby-lobby-sued-over-promotional-price-practices/

Our friends at Hobby Lobby are being accused of shady price practices.  You might remember that these are the fine folks that went to court to be allowed to not cover everything in their health insurance 'because religion" and I seem to recall had some tie to bringing religious artifacts purchased from shady sources into the country 'because religion.'

 

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Hobby Lobby sued over promotional price practices

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Sometimes, advertised deals aren't what they seem to be. And that could be the case at arts and crafts retail chain Hobby Lobby, which was accused in a federal lawsuit filed this week in California of using "sham" deals to entice customers to buy its branded products.

The 60-page suit alleges that the Oklahoma City, Oklahoma, company employed fraudulent business practice by using false reference prices to fool consumers into thinking they're getting a good deal. According to the filing, the "marked" price doesn't represent a "bona fide" price at which Hobby Lobby sold a substantial quantity of merchandise for a "reasonable period of time," as required under Federal Trade Commission rules.

"Retailers, including Hobby Lobby, understand that consumers are susceptible to a good bargain, and therefore, Hobby Lobby has a substantial interest in lying in order to generate sales," the lawsuit said. "A product's 'regular' or 'original'  price matters to consumers because it serves as a baseline upon which consumers perceive a product's value."

The case seeks to stop Hobby Lobby from engaging in allegedly unethical and deceptive practices and to correct the misleading impression that consumers have about its branded products.

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A spokesman for Hobby Lobby declined to comment for this story.

San Diego resident Christina Chase is the lead plaintiff in the case, which is seeking class action status. 

According to the filing, Chase purchased a 5-inch by 7-inch Green Tree Gallery Shadow Box Display Case Photo Frame for about $8.99 around March 1 at a Hobby Lobby store in La Messa, California. A white price tag on the back of the item showed the "marked" price as $17.99. There also was a white placard with the words "Photo Frames 50 percent Off the Marked price" in red and black print.

"However, this product was never offered for sale or sold at the $17.99 price, nor was it offered for sale or sold at that price within the 90-day period immediately preceding Ms. Chase's purchase," the court filing says.

Chase, who also bought a paintbrush that day for $2.34 that allegedly was advertised in a similarly misleading way, is seeking to represent a class that includes anyone in California who bought one or more Hobby Lobby-branded and trademarked products based on bogus discounts. The lawsuit alleges that Hobby Lobby "continually advertises fictitious discounts" using in-store flyers. Lawyers found similar practices at three other Hobby Lobby stores in Southern California.

Hobby Lobby -- owned by the Green Family, which identifies as evangelical Christian -- is the second-largest retailer of arts and crafts supplies, with $4 billion in 2015 sales. It gained notoriety as the plaintiff in a legal challenge to the Affordable Care Act's (ACA) mandate that required employers to cover the cost of contraceptives in their health insurance plans for employees. In 2014, a divided U.S. Supreme Court ruled in Hobby Lobby's favor, arguing that the ACA rule violated a federal law protecting religious freedom in the case of family-owned companies. 

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[47of74]

1 hour ago, clueliss said:

http://www.cbsnews.com/news/hobby-lobby-sued-over-promotional-price-practices/

Our friends at Hobby Lobby are being accused of shady price practices.  You might remember that these are the fine folks that went to court to be allowed to not cover everything in their health insurance 'because religion" and I seem to recall had some tie to bringing religious artifacts purchased from shady sources into the country 'because religion.'

 

 

I hope they get taken to the cleaners.  I've refused to shop at hobby lobby ever since they won their we wanna discriminate cause religion suit.

[PennySycamore]

I have a pair of peace sign earrings made from charms and some old ear wires that I've found only at Hobby Lobby.  I bought these charms before HL filed their anti-ACA suit.  I recently lost one earring, but was able to make a replacement with a charm that I'd bought several years ago.  I also bought a pair of peace sign earrings from Soul Flower when they were having a sale earlier this week.  I'll go to JoAnn's or Michael's before I set foot in HL even though HL is about 2 blocks away.

[47of74]

1 minute ago, PennySycamore said:

I have a pair of peace sign earrings made from charms and some old ear wires that I've found only at Hobby Lobby.  I bought these charms before HL filed their anti-ACA suit.  I recently lost one earring, but was able to make a replacement with a charm that I'd bought several years ago.  I also bought a pair of peace sign earrings from Soul Flower when they were having a sale earlier this week.  I'll go to JoAnn's or Michael's before I set foot in HL even though HL is about 2 blocks away.

Something I got in to for a while about 10 years ago was making  wooden clocks.  HL had a lot of the parts, such as movements, hands, faces, and so on.  Michaels does too but they don't have as much as HL does for those clocks.  It's been a while since I've made one but might get back in to it.  If I did I wouldn't step foot in HL to get what I needed, and if I couldn't find the stuff locally I'd order it from Klockit.   

[ADoyle90815]

5 hours ago, PennySycamore said:

I have a pair of peace sign earrings made from charms and some old ear wires that I've found only at Hobby Lobby.  I bought these charms before HL filed their anti-ACA suit.  I recently lost one earring, but was able to make a replacement with a charm that I'd bought several years ago.  I also bought a pair of peace sign earrings from Soul Flower when they were having a sale earlier this week.  I'll go to JoAnn's or Michael's before I set foot in HL even though HL is about 2 blocks away.

In my area, a Hobby Lobby opened near both a JoAnn's and Michael's. Even then, I still refuse to shop at HL, and will continue to go to those other stores. If only Hobby Lobby has something the other stores don't, then I'll just order it online from Amazon or other online store.

[CrazyLurkerLady]

I always hated that place anyway. Even before the birth control thing I never shopped there. It's called HOBBY Lobby and yet 90% of the stuff they sell is overpriced tchotchkes and home decorating stuff for middle-aged ladies. Their actual hobby stuff was really sparse and also really overpriced. Most of what I buy is yarn and their yarn was always at least $2 higher per skein than other places.

Has anyone seen those price tags that have no only the phony MSRP but also the discount price pre-printed on it? Like they'll have a price at the top with a red slash through it and then the selling price at the bottom, but it's all printed and not marked down with a sticker or something. I HATE those. They can't even pretend like they're giving you a discount, they're just trying to make you feel like if you bought it somewhere else you'd pay the higher price. I refuse to shop at places that do that.

[Jug Band Baby]

4 hours ago, CrazyLurkerLady said:

It's called HOBBY Lobby and yet 90% of the stuff they sell is overpriced tchotchkes and home decorating stuff for middle-aged ladies.

Joann Fabrics is like that now too.  A hobby of mine is making fancy cakes, and my local Joann Fabrics is the best place in the area to get cake supplies.  The baking department is bigger than the fabrics.  There's even a toy department.  The largest department is the home decorating department.  I'm embarrassed to say it, but a few rooms in my house are decorated at least 90% in stuff from there because they do have cute stuff!  They also have a large education department.  I buy so much stuff there that the manager gave me a VIP discount card that gets me an extra 10% off sale and clearance stuff.  

It won't be long before they start selling sporting goods and camping supplies to go with their outdoor patio sets and patio umbrellas.  Which mine has.  I bought mine there.

[polecat]

I noticed this about Hobby Lobby a long time ago. Everything is always on sale all the time. I've never seen things offered for a regular price -- it's always "40% off!" or "50% off!" or whatever. But you rarely see things offered at regular price, especially ESPECIALLY holiday merchandise.

[Leftitinmysnood]

Considering they don't use price scanners to keep track of sale prices, they can't be changing the price that often. Everything has to be rung up by 10 key entry. I've only been once, and I forget if they enter the price or the item code, but I now wonder if that is an excuse to hide deceptive pricing.

[47of74]

Considering they don't use price scanners to keep track of sale prices, they can't be changing the price that often. Everything has to be rung up by 10 key entry. I've only been once, and I forget if they enter the price or the item code, but I now wonder if that is an excuse to hide deceptive pricing.

Maybe they think the scanners are the tools of Satan and/or the antichrist. Or they're really cheap. I've always found it a bit odd they don't use scanners. Even Wally World uses scanners.

[onekidanddone]

On 5/5/2017 at 11:50 AM, 47of74 said:

I hope they get taken to the cleaners.  I've refused to shop at hobby lobby ever since they won their we wanna discriminate cause religion suit.

I'm glad we don't have one in my area.

[Glasgowghirl]

I hate places that claim you're getting a bargain when you are clearly not. Here in the UK a sports chain sports direct are famous for doing it. The shop near my work has had a closing down sale for 6 years, no joke. 

 

[LadyCrow1313]

HL opened in my area about 5ish years ago, & I admit to stopping in to see what it was like. I wasn't overly impressed with it, really; very akin to Michael's & Joanne's. Granted, some of their stuff was nice, but since all the aforementioned shenanigans came to light, I haven't been back and am not in a big rush to do so.

[catlady]

i have mixed feelings about HL.  their home decor is pretty at first, but the quality (at the 2 stores near me anyway) is actually quite poor--lightweight, fragile-feeling, and generally seems like it would fall apart with regular use.  some items do seem to have rotating sales; when i was making jewelry, i noticed that they would rotate which brands were 50% off, and at least one always was.  and the silk flowers' sales come and go.  but it appears that the more-expensive items are always on sale.

the one thing i confess to buying regularly is their wrapping paper; it's actually good quality.  but i feel guilty buying it because they're still a pretty shitty company.

[Jug Band Baby]

22 hours ago, Glasgowghirl said:

I hate places that claim you're getting a bargain when you are clearly not. Here in the UK a sports chain sports direct are famous for doing it. The shop near my work has had a closing down sale for 6 years, no joke. 

 

We have an Oriental rug shop like that here.  Been "closing, clearance!" for 6 years or so.

[DarkAnts]

Hobby Lobby is coming to my town soon. It will be in the same shopping complex as Joanns. I plan on shipping at Joanns because I dont want them to go out of business.

[clueliss]

I once looked at a set of markers - Flairs if I recall - at Hobby Lobby.  Decided not to get them.  Found them soon after across the main road at Target - where they were less expensive.  And I bought them at Target.  I've been suspicious of Hobby Lobby pricing since.

[EowynW]

Not surprised. I do shop at hobby lobby though, only because ours has a lot of great affordable yarn + a steady 40% off coupon via the app, and our Joann's and Michael's have a terrible yarn selection. I'm a knitter and there are no local yarn stores so it's HL or online for yarn. 

[Fundie Bunny]

On 2017-5-12 at 0:24 AM, 47of74 said:

 

Maybe they think the scanners are the tools of Satan and/or the antichrist. Or they're really cheap. I've always found it a bit odd they don't use scanners. Even Wally World uses scanners.

 

Why don'te they use scanners? Do they live in 1964? Please, tell me more about this wonderfully weird and bigoted store

[formergothardite]

30 minutes ago, Fundie Bunny said:

Why don'te they use scanners?

From their website.

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Why don't you use barcode scanners in your stores?

We have considered scanning at our registers, but do not feel it is right for us at this time.

 

So a total non-answer. It really doesn't make sense and makes me think they are doing something shady that would be harder to do if they used scanners. 

[clueliss]

Scanners would require maintaining systems and hiring more people and making prices easier to track.  And if they are not a publicly traded company they can get by with more non transparency in their inventory valuation and cost of goods sold practices.  (Pardon the accountant here, said knowledge falls into my wheelhouse)

[Chocolatedefrauded]

A young family member works at HL, I'll have to ask her about this when I see her next month. She used to work at Michaels & got $4 an hour more at HL. Of course she is now pregnant, so there is that.  It was a surprise to her family but I'm not going to ask if she planned a baby or the "no contraception coverage" played a role. I'm curious but asking would be rude.

[47of74]

23 hours ago, clueliss said:

Scanners would require maintaining systems and hiring more people and making prices easier to track.  And if they are not a publicly traded company they can get by with more non transparency in their inventory valuation and cost of goods sold practices.  (Pardon the accountant here, said knowledge falls into my wheelhouse)

Good point.  I'm not sure if it's all 50 states, but a lot of states require the scanners to be inspected and approved to ensure they're working accurately.   With some states stores can be fined if their scanners aren't a certain level accurate, such as 98%.  

Here in Iowa the one grocery store chain I go to puts the stickers on the scanners themselves so they can be seen by customers, but I don't know that it's actually requirement that the stickers be visible to customers.  I don't think everyone makes the stickers visible, but I don't always pay attention to such things.

If HL had price scanners it would require them to ensure that they're working correctly, and depending on the location require them to have the scanners inspected by the ebil gubmit.  It'd require a level of transparency that HL does "not feel it is right for us at this time."

[Shoobydoo]

You know, none of my friends believe that it's actually illegal to advertise false sale prices because so many of them have worked in retail environments that do it 365 days a year. One mentioned Kohls in particular as being really bad for it. As for Hobby Lobby, I avoid it these days, but you can pry my rooster shaped soap dispenser from my cold, dead hands. 

[47of74]

Hobby Lobby's CEO steps in it again...

http://the-daily.buzz/a/hobby-lobby-ceo-says-i-dont-think-so-to-maternity-leave?utm_content=inf_10_1163_2&tse_id=INF_ba0aaf90462b11e780b645b806a7020f

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David Green is a self-identified evangelical Christian, the CEO of Hobby Lobby and the author of a book called Giving It All Away, which talks about the importance of being generous in business and in one's day-to-day life. He made headlines by successfully suing the government so that Hobby Lobby no longer had to cover women's contraceptives on the company health plan. He felt it went against the corporations religious values.

When Mr. Green went to Business Insider to promote his book about being a generous businessman, that topic came up. Since the company doesn't cover many forms of birth control, Business Insider wanted to know if they offered maternity or parental leave.

His response? "I don't think so."

The Twitters are showing Hobby Lobby the love now....