Compton Municipal Code § 9-18 Sales Involving False Advertising

[Added by Ord. #980, § 6500; Ord. #990]

It shall be unlawful for any person to present and/or hold out that any sale of goods, wares and merchandise is an insurance, bankruptcy, mortgage, insolvency, assignee's, executor's, administrator's, receiver's, trustee's, creditor's, forced liquidation, closing-out sale, or a sale of goods, wares and merchandise damaged by fire, smoke, water, or otherwise, or to use any other word or phrase, which would reasonably convey to the public the belief that said person was retiring from or closing his business, in the City, unless he shall have first obtained a license from the City License Collector so to do. This section shall not apply to public or court officers or to any person acting under direction of state or federal Court in the course of their official duties.

[Added by Ord. #980, § 6501]

As used in this section:

PERSON

Shall mean and include both the singular and plural and shall also mean and include any person, individual, firm, corporation, copartnership, association, club; society or any other organization.

[Added by Ord. #980, § 6502; Ord. #990]

a. Every person managing, conducting or carrying on a sale specified in Subsection 9-18.1 shall make written application to the City License Collector for a license so to do. This application shall be signed and sworn to by the applicant and shall state all the facts in regard to the contemplated sale, the period of time during which the sale shall be held, which period shall not exceed 60 days, but may be extended by an additional application to the City Council for another 30 days. The applicant shall also furnish satisfactory evidence by way of a statement in the application or otherwise that the merchandise which he proposes to sell is a bona fide part of his stock in trade and that the same has not been secured, purchased, or brought into the applicant's place of business for or in anticipation of such sale. Such application shall also contain the reason for such sale, an inventory of goods, which inventory shall show the actual purchase price, names of persons from whom such goods were obtained, the date of purchase of such goods, and all details necessary to identify fully the goods to be sold.

The applicant shall also state whether or not the goods to be sold were purchased at a former sale, conducted in compliance with Subsection 9-18.1. No license shall be issued to any person if it appears that the stock of goods was purchased at a former sale, as hereinabove set forth, less than one year prior to the date of his application.

b. The City License Collector shall file the application and shall enforce thereon the date such license is granted or refused.

c. It shall be unlawful for any person to make a false statement in such application.

[Added by Ord. #980, § 6503]

a. Every person managing, conducting, or carrying on a sale as specified herein shall pay the license fee required in the sum of $25 if the inventory is $25,000 or less, and a further fee of $25 for each $25,000 of inventory in excess of $25,000.

b. A license issued under the provisions of this section shall be valid only for the inventoried goods.

c. A license issued under the provisions of this section shall not be transferable.

[Added by Ord. #980, § 6504]

It shall be unlawful for any person managing, conducting and/or carrying on a sale as specified in Subsection 9-18.1 to secure goods other than those enumerated in said inventory for the purpose of selling same at said sale.

[Added by Ord. #980, § 6505]

It shall be unlawful for any person having a license under this section to add any goods to the inventoried stock and no goods shall be sold except that included in the original inventory.

[Added by Ord. #980, § 6506]

It shall be unlawful for any person, firm or corporation to conduct, maintain, operate or advertise at retail any fake sale of goods, wares or merchandise within the City.

[Added by Ord. #980, § 9507]

For the purpose of this section, a fake sale is hereby defined to be:

a. The sale of goods, wares or merchandise at auction or otherwise to agents, or any other persons purchasing the same for or on behalf of the owner or other person interested in the sale thereof;

b. The sale of goods, wares or merchandise or the offering of goods, wares or merchandise for sale in limited quantity or quantities of less than the full amount of such merchandise owned or carried in stock by the person, firm or corporation offering the same for sale;

c. The sale or offering for sale of goods, wares or merchandise of a differing quality or brand and/or bearing a different trade mark as a substitute for merchandise previously advertised for sale;

d. The sale or offering for sale of any goods, wares or merchandise misrepresented as to quantity, quality, brand or otherwise;

e. The sale or offering for sale of any goods, wares or merchandise which is contingent upon the concurrent purchase or sale of any other article.