HOBOKEN, NJ — Both the state of New Jersey and the city of Hoboken have passed laws regulating how long a business can hold a clearance sale with appropriate signage, limiting advertising to a few months.
But Cheap Maggie’s, a clothing discounter on Hoboken’s main street, announced nine months ago that it was leaving the city and began offering items at up to 80 percent discount in November – and it still hasn’t left.
States and cities have passed laws regulating “business clearance sales” to ensure that the unsightly signs are there for a reason and that the sales are legitimate.
Back in May, Marci Rubin, a spokeswoman for the city and public safety, said, “There have been no complaints against Cheap Maggie’s and the city’s zoning commissioner continues to monitor the business.”
The following regulations apply to clearance sales in the state of New Jersey:
“It shall be an unlawful practice for any person to advertise any goods as a ‘going out of business sale’ or in terms substantially similar to ‘going out of business sale’ for a period exceeding 90 days, or to advertise more than one such sale within any 360-day period. The 360-day period shall begin on the first day of any such sale. For any person violating this law, each day on which he or she violates this law shall constitute an additional, separate, and distinct violation.”
It was not immediately clear whether a sale due to store closures would apply. The rule is part of the Consumer Protection Act and is enforced by the New Jersey Attorney General/DCA.
Hoboken Law
However, the city has its own policy on “business clearance sales” and states that it also applies to clearance sales.
The regulation states that the business must obtain a permit for such sales, which is valid for 30 days. After that, a store can only apply for a permit once for another 30 days.
This applies to “sales conducted in a manner that would cause the public to reasonably believe that the business will cease after the disposal of existing inventory. This includes, but is not limited to, the following sales: adjuster, adjustment, modification, assignee, bankruptcy, for the benefit of an administrator, for the benefit of creditors, for the benefit of trustees, demolition of a building, closing, committee of creditors, end of creditor, executor, last days, eviction, going out of business, receiver, last days, lease expiring, liquidation, loss of lease, mortgage sale, receiver, trustee, going out of business.”
The laws are here.
Cheap Maggie’s, which has a store in Parsippany, did not respond to an email sent to them last week.
When asked about the incident on Friday, Hoboken City Public Safety spokeswoman Marci Rubin said, “To date, Cheap Maggie’s has not been fined or given a citation by the City Planning Department.”
When asked whether the company had given the city a date for the closure, she did not respond.
