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NorCal Prosecutors Sue Overstock.com Over Alleged False Claims

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(CBS)

(CBS)

OAKLAND (AP) — Seven Northern California district attorneys have sued online retailer Overstock.com Inc., accusing the company of regularly making false and misleading claims about its prices.

Alameda County District Attorney Nancy O’Malley announced the civil suit on Wednesday. The plaintiffs include O’Malley and the district attorneys of Marin, Monterey, Napa, Santa Clara, Shasta and Sonoma counties.

According to the suit, since 2006 Overstock’s claims of discounts were often not based on comparison’s with actual competitor’s prices, but the company’s own arbitrary markups.

It seeks $15 million in restitution and penalties.

Salt Lake City-based Overstock’s general counsel, Mark Griffin, denied the allegations. He told the Oakland Tribune the company informs customers how it arrives at comparison prices.

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