Right Column

California Department of Consumer Affairs Revokes License of Italian Furniture Maker

California furniture retailer Eskandar "Alex" Hakakian and six associated furniture companies have consented to pay more than $40,000 in civil penalties and to refrain from illegal business practices, according to an agreement with the Los Angeles County District Attorney.

The case resulted from an investigation by the Bureau of Home Furnishings and Thermal Insulation (BHFTI) and the Los Angeles County District Attorney's Consumer Protection Division.

The stipulated agreement was the basis for a July 7, 2003, judgement in Los Angeles County Superior Court involving Hakakian and the following furniture companies: California stores Leather Expo, Inc., Granada Hills Furnishings, Inc., Covina Furnishings, Inc., and Ventura Furnishings, Inc.; and a Delaware company, Castro-Krause's Industries, Inc.

The defendants in the case, Hakakian and the furniture companies, agreed they would not violate the California Business and Professions Code in the sale of furniture or household furnishings by:

• Using fraudulent business, such as false or misleading advertising
• Using the terms "Going Out of Business,""Selling Out" or "Closing Out" unless they actually stay out of the business for at least six months
• Directly stating or implying that stores are going out of business, if this is untrue or would mislead consumers
• Conducting a going-out-of-business sale that involves merchandise other than what is on the premises or from orders made prior to the date the sale is announced

As part of the settlement, a Superior Court judge ordered Hakakian and the other defendants to pay $40,340, with about $20,000 of that representing civil penalties, $18,000 going toward BHFTI's investigative costs, and $2,000 for the legal and investigative costs of the Los Angeles County District Attorney. Hakakian and the furniture companies agreed to the settlement but did not admit any liability.

The California Business and Professions Code prohibits unfair competition through fraudulent business practices, such as false or misleading advertising.

Consumers who are concerned about the business practices of a California upholstered furniture or mattress retailer can contact the Bureau of Home Furnishings and Thermal Insulation online at www.bhfti.ca.gov, via e-mail at contactbhfti@dca.ca.gov, or by calling (916) 574-2041.