From: technews <technews@ou.edu>
To: "'it-fyi@listserv.ou.edu'" <it-fyi@lists.ou.edu>
Subject: it-fyi: College-Store Association Sues VarsityBooks (Chron of Hig
Date: Mon, 1 Nov 1999 10:00:00 -0600
College-Store Association Sues VarsityBooks Over Claims in Ads
By GOLDIE BLUMENSTYK
The National Association of College Stores sued VarsityBooks.com
(http://www.varsitybooks.com) on Friday, accusing the on-line bookselling
company of making "false and misleading advertising" claims.
The lawsuit, filed in federal district court here, alleges that the
company's ads mislead potential customers by promising discounts of 40 per
cent on suggested prices for textbooks.
"In truth and fact, Varsity offers only a small percentage of its textbooks
at 40 per cent below the prices charged by on-campus bookstores and other
online competitors," the suit says. The lawsuit also accuses the company of
deceiving consumers about the extent of its discounts. "On its World Wide
Web site, Varsity has defined the 'Suggested Price' as the price publishers
suggest that bookstores charge for new textbooks," the lawsuit says. "In the
college publishing industry, however, there is no 'Suggested Price' provided
by the publishers for many of the textbooks printed."
The college-store association, a trade group representing more than 3,000
higher-education retailers, is seeking an injunction that would bar
VarsityBooks from using "suggested price" or any similar term "unless the
publisher of said product, in fact, issues the stated suggested price for
said product."
The suit seeks an injunction that would require Varsity books to "retract
its previously false and misleading advertising" on its Web site and in its
advertisements, and would prevent the company from promoting any discounts
"unless Varsity identifies, clearly and prominently, the true bases for the
claimed discount."
VarsityBooks officials could not be reached for comment on Friday. According
to a voice-mail greeting at its headquarters here, the company was closed
because its offices were being moved to another location in the city.
Founded in the summer of 1998, VarsityBooks was one the first companies to
encourage students to bypass their campus bookstores and buy their textbooks
directly on the Internet. VarsityBooks recently announced plans to sell
stock to the public.
Officials of the bookstore association, which is based in Oberlin, Ohio,
said the lawsuit was not an attack on Internet booksellers generally.
"NACS is not opposed to on-line bookselling," said Brian Cartier, the
association's chief staff officer, in a statement. He noted that many of the
association's members are themselves using e-commerce, but added: "We simply
cannot stand idly by, however, when huge sums of money are being spent on
deceptive advertising and promotional campaigns directed at college
students."
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Copyright 1999 by The Chronicle of Higher Education