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Shasta County man settles with Overstock.com

By Stephanie Montano, smontano@krcrtv.com
Published On: Feb 21 2014 08:51:41 PM CST
REDDING, Calif. -

Overstock.com has been forced to pay up after a Shasta county man bought two patio sets and then found out they were priced less than what he paid.

Shasta County sued in November 2010, along with eight other bay area counties.

Overstock had to pay $6,828,000 in civil penalties plus repayment of the cost of the lawsuit.

Deputy District Attorney Lucky Jesrani said when the consumer opened his package he saw a price tag from Wal-Mart of $247. The consumer paid $449, even though the webpage showed that potential buyers would be saving a lot of money since Overstock.com indicated the sets were worth $999.99.

The Shasta County District Attorney’s Office said the major issue with Overstock.com's prices was that they were created using mathematical formulas, based on similar products and based on the highest price that could be found in the marketplace.

“Shopping online or in a normal retail store, I always recommend to be cautious,” said Jesrani. “Where ever your doing your shopping to be cautious but in any event consumers do have a right to feel businesses are being honest and truthful with them in their advertising."

If you believe you have been a victim of unlawful business practices you are encouraged to contact the consumer law division of the Shasta County District Attorney's Office.