99 Cents store sued for raising price to 99.99 cents

July 23rd, 2010 - 4:45 pm ICT by ANI  

London, July 23 (ANI): Shoppers are suing US cut price chain store ‘99 Cents Only’ for increasing the price of its most expensive items to 99.99 cents.Customers have alleged the store of unfair and deceptive business practices and misleading advertising.

The store is now facing two class action lawsuits in Los Angeles.

The fraction of a cent increase was introduced at 277 outlets in California, Nevada, Arizona and Texas in 2008, to keep pace with inflation.

Prices are rounded up so customers have effectively been charged one dollar for each item.

The increase has brought in an extra 12 million dollars at the cash registers annually.

The discount chain denies it was trying to deceive shoppers and argues that it did not raise prices by a full cent because it wanted to remain faithful to the number 99.

It was the first increase in its top price since it was founded in 1982.

In fact, some items at the stores are still sold for as little as 49 cents.

The company said it had changed signs, put up posters, and taken out newspaper advertisements to let shoppers know abut the increase.

However, some customers, who include pensioners and low-income families, claim they were not properly informed and are being short changed.

“If they call themselves 99 Cents Only, it should be 99 cents. The people they’re taking advantage of are the ones least able to discern the difference and least able to afford it,” the Telegraph quoted Dan Callahan, the lawyer for the shoppers, as saying. (ANI)

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