Palm Desert Municipal Code Ch. 5.08 Deceptive Trade Practices

A. Definitions.

"Going out of business sale"

means an offer to sell to the public, or the sale of, goods, wares, and merchandise, to the public, on the implied or direct representation by written or oral advertising that the sale is in anticipation of the termination of all of the operations of a business at all of its locations in the city.

"Person"

means any person, business, firm, partnership, corporation, association, club or organization, or the like.

B. Prohibited Conduct.

1. A person may not conduct a sale advertised with the phrase "going out of business," "closing out," "shutting doors forever," or "bankruptcy sale"; the word "foreclosure" or "bankruptcy"; and/or a similar phrase or word indicating that an enterprise is ceasing business unless the business is closing all of its operations in the city.

2. A person may not fraudulently represent that the person is conducting a "going out of business sale."

C. "Going Out Of Business Sale" Process and Procedure.

1. A "going out of business sale" can be noticed and approved in one of two manners:

a. If a patrolling code officer observes a "going out of business sale" and/or similar activity, or responds to a complaint regarding such an activity, he or she will stop and issue a notice and a handout/application explaining the requirements for conducting a "going out of business sale," including signage requirements.

From the date the notice is issued, applicants will be authorized to conduct the sale for ninety days; or

b. If a business owner goes to City Hall requesting "going out of business sale" information/procedure, an official from planning or code will provide a handout/application explaining the requirements to conduct a "going out of business sale," including signage requirements. From the date the handout/application is given, the applicant will be authorized to conduct the sale for ninety days.

2. At the time the application is filed, applicant shall grant permission to the city manager (or designee) to enter, during normal business hours, the property or premises on which the sale is to be conducted for the purpose of verifying the accuracy of the inventory statement required by this section.

3. Applicant may apply for one forty-five day extension, which shall be subject to the conditions imposed by the city manager.

D. Deadline for Orders. A person may not sell an item at a "going out of business sale" if the person ordered the item after the beginning date of the sale.

E. Disposition of Sale Items. After a sale ends, a person may not sell at retail price an item offered at the sale.

F. Exceptions. This subsection does not apply to:

1. A sale conducted by a public officer as part of the officer's official duties;

2. A sale for which an accounting must be made to a court of law;

3. A sale conducted pursuant to an order of a court of law; or

4. A foreclosure sale pursuant to a deed of trust or other lien.

G. Penalty and Enforcement.

1. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter. In addition to other remedies provided by law, any person violating any provision of the chapter for failing to comply with any of the requirements is deemed guilty of an infraction in accordance with Chapter 1.12 of this code.

2. Each person shall be deemed guilty of a separate offense for each and every day, or any portion thereof, during which any violation of or failure to comply with any of the provisions of this chapter is committed, continued or permitted by such person, and each instance shall be deemed punishable as provided in this chapter.

3. The provisions of this chapter shall not be construed as permitting conduct not prescribed herein and shall not affect the enforceability of any other applicable provisions of law.

H. Appeal. An applicant may appeal a decision by the city manager or designee to impose condition on a sale, denying a sale, or revoking approval of a sale by filing a written appeal with the city clerk within ten days after the date on the notice of the decision of the city manager. The city council may hear the appeal, or appoint a hearing officer to take evidence, and submit findings and recommendations. The city council shall render its decision within thirty days after the hearing or thirty days after receipt of hearing officer report for final decision. The decisions of the city council shall be final.

(Ord. 1191 § 1, 2009)