§ TThe Better Business Bureau is warning shoppers to keep their eyes open for false deals when heading to going-out-of-business sales.

The consumer advocacy group noted the recent bankruptcies and liquidation sales of national retailers Linens-N-Things and Circuit City following a lackluster sales in 2008. When a retailer such as Circuit City liquidates its assets, the actual sale is run by a liquidator that will set the prices and attempt to sell the items quickly and at the highest profit. As a result, some items will actually be marked up for the sale, BBB warned.

In 2008, an ABC News report revealed many items sold during Linens-n-Things’ liquidation sale were marked up by as much as 14 percent. And according to a mystery shopping trip by Consumer Reports, Circuit City’s liquidation sale included such “deals” as a big-screen TV that had been marked up by more than $400 dollars and computer printers that had been marked up by as much as 100 percent, BBB noted.

“In this economy, we’re all looking for bargains,” said Fred T. Elsberry Jr., president and CEO of the BBB Serving Metro Atlanta, Athens and Northeast Georgia, in a news release. “Unfortunately, the bargains are not always as advertised at going-out-of business sales and some consumers don’t realize they’re getting ripped off when they’re supposed to be getting a deal.”

The BBB said consumers should confirm that a deal really is a deal, use credit card since they include built-in consumer protections, know the status on warranties, use gift cards quickly after a retailer announces liquidation and don’t expect a high level of customer service. 

February 4, 2009  BBB