Press Release Archives - #655-96 Holiday Enforcement Action Against Electronics Store

Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: December 17, 1996

Release #655-96

Contact: Colleen Roche (212) 788-2958, Jack Deacy (212) 788-2969
or Shonna Keogan (DCA)(212) 487-4283

MAYOR GIULIANI AND CONSUMER AFFAIRS COMMISSIONER JOSE MALDONADO ANNOUNCE HOLIDAY ENFORCEMENT ACTION AGAINST ELECTRONICS STORE "GRINCHES"

Amid the bustle of holiday shoppers at J & R Electronics, Mayor Rudolph W. Giuliani and Consumer Affairs Commissioner Jose Maldonado today announced the issuance of 1,100 violations against 30 stores citywide as part of a Consumer Affairs investigation targeting electronic stores that seek to scam New York shoppers.

"New York City's reputation as the shoppers' capital of the world makes it one of the most exciting places to be during the holidays and also brings great financial benefits to the city and its residents," said Mayor Giuliani. "But consumers in search of bargains can often be deceived by phony advertised specials, fooled by unscrupulous merchants who sell used goods as new and assaulted by the high-tech fast talk of aggressive sales people."

"We want to send a clear message to New Yorkers and visitors alike that unscrupulous merchants who repeatedly violate consumers' rights will not be tolerated," the mayor added. "New Yorkers should also know that there were ten stores in the sweep that had no violations. We urge shoppers to consider these stores in their shopping plans."

"I also want to thank J & R Electronics for hosting our press conference today," the Mayor said. "They employ almost 1000 New Yorkers, enjoy a sterling reputation in the industry and have never been cited for a consumer violation."

A team of DCA inspectors conducted inspections of 40 stores in New York City. Of the 1,100 total violations issued:

ù 308 violations were issued for offering items for sale above the Manufacturer's Suggested Retail Price (MSRP) without disclosure, or giving a false and inflated MSRP.
ù 63 violations were issued for selling used items without labeling them as such.
ù 344 violations were issued for failing to have prices marked on items for sale.
ù 340 violations were issued for failing to have prices on items for sale visible without the assistance of store personnel.
ù 45 violations were issued for other deceptive practices.

"Through these investigations, the City hopes to bring these stores not only to justice, but also to the attention of the public," said Consumer Affairs Commissioner Jose Maldonado. "Only by fighting fraud on two fronts -- enforcement and consumer education -- can we effectively put scam artists out of business."

The stores cited violated New York City's Electronics Store Licensing Law and Consumer Protection Law and have been served with Notices of Hearing. The violations issued against the 30 licensees will be adjudicated before independent Administrative Law Judges at the Department of Consumer Affairs, where owners can present defenses against the alleged violations. If the store owners are found guilty, they will be subject to fines up to $500 per count, as well as possible suspension or revocation of their electronics store license.

The top 10 violators, according to the DCA electronics store inspection sweep, are as follows:

Top Ten Violators					Number of Violations
1.	Marquis Galleries, Ltd.					102
	519 Lexington Avenue
	New York, NY 10017

2.	Sharper Photo & Electronics Corp.			89
	Business name: 47th Street Audio Photo
	Computers & Video
	520 Fifth Avenue
	New York, NY 10036

3.	Zion's Electronic Corp.					85
	Business name: Fordham Electronics
	66 East Fordham Road
	Bronx, NY 10468

4.	Golden Temple Funding 					77
	885 6th Avenue
	New York, NY 10001

5.	Rainbow Camera						76
	875 6th Avenue
	New York, NY 10001

6.	7th Avenue Gallery Inc. 				72
	162 West 56th Street
	New York, NY 10019

7.	44th Street Camera & Electronics			72
	Business name: West Side Camera & Electronics
	694 8th Avenue
	New York, NY 10036

8.	Hatzlaha Electronics					68
	Business name: Electronic Wonders II
	485 Fifth Avenue
	New York, NY 10017

9.	Audio Photo International 				62
	5 West 42nd Street
	New York, NY 10036

10.	Eastern Computer & Notebook Co.				48
	425 Madison Avenue
	New York, NY 10017

Ten stores in the sweep had no violations. They are:

Cambridge Camera Exchange Inc.
Business name:  Seyours Inc.
45 7th Ave.
Manhattan

Excel Computer & Software Inc.
401 Park Ave. South
Manhattan

5th Avenue Photo, Inc.
402 5th Ave.
New York, NY  

GCT Photo Dealers
420 Lexington Ave.
New York, NY  

Nobody Beats the Wiz
871 6th Ave.
New York, NY 

Audio X-Press Inc.
2856 Third Ave.
Bronx, NY 

The Wiz Distributors Ltd.
8514 Bay Parkway
Brooklyn, NY

Nobody Beats the Wiz
96-16 Queens Blvd.
Rego Park, NY

P.C. Richard & Son
35-02 Steinway Street
Astoria, NY

Queens Camera and Computer
95-20 Queens Boulevard
Rego Park, NY

Commissioner Maldonado also advised consumers to be aware and look out for the following practices when purchasing electronic goods:

Advertised Specials On Items That Are Out Of Stock. After you're told the item is unavailable, the salesperson urges you to buy something more expensive or of lower quality. To avoid this classic "bait and switch" scam, know what you want before entering the store and stick to your guns.
Used Goods Sold As New. It's tough to distinguish used or rebuilt goods from new ones. Any item that isn't new has to be labeled, but many are not. If the label says "used," "floor model," "rebuilt," or "refurbished," then it's not new.
Targeting Tourists. Beware of salespeople who ask where you're from or how long you're going to be in town. They may be setting you up for a scam on the premise that you won't be around long enough to complain.
Deceptive Price Tags. Electronics stores must disclose if they are charging more than the Manufacturer's Suggested Retail Price (MSRP), but many stores do not. In addition, some stores mislabel price tags displayed in shop windows or sales counters. You can check the MSRP for most items before you enter the store by calling the manufacturer's 800 number. If you shop around you should find prices at or below the MSRP.
Credit Card Scams. Some stores add digits to credit card slips after consumers sign them, turning a $29.95 purchase into a $129.95 expense. Check your credit card receipt carefully before you leave the store, and keep all receipts.
The New York City Department of Consumer Affairs offers a tip sheet for consumers to protect themselves against being scammed by electronics vendors, as well as a guide for electronics store owners. To receive these publications, write to:

		NYC Department of Consumer Affairs
		Electronics Consumer Tip Sheet/Electronics Business Guide
		42 Broadway
		New York, NY  10004

Consumers who wish to lodge a complaint against an electronics store can write to the address above or call the NYC Department of Consumer affairs hotline at (212) 487-4444.