November 10, 2009
Legal Filing Claims BevMo's "Five Cents" Sale Deceives
A class-action compliant filed in San Francisco last month alleges Beverages & More Inc.’s widely advertised “Five Cents” sale is deceptive and calls it a “fraudulent business practice.”
The promotion, which has run for a number of years, wraps up this week. According to the complaint, BevMo represents consumers paying the “regular price” for a first bottle get a second identical bottle for just “five cents.” The complaint claims, though, that BevMo, which in fifteen years has grown to operate 100 stores, marks up the regular price of the first bottle so consumers are not actually paying BevMo's regular price. For some bottles of wine, BevMo marked up the price so much that it actually cost more to buy two bottles during the sale, the filing claims
The complaint cites the example of a Vago Rojo Tempramillo-Malbec advertised in the sale at $19.99 a bottle so consumers would pay a total of $20.04 for two bottles for an apparent savings of $19.94. It claims however, that BevMo's price for the same wine then dropped from $19.99 to $6.99, meaning consumers could buy two bottles for $13.98.