Retail giant Best Buy has filed a lawsuit against Thornton-based Ultimate Electronics on claims of false advertising.
Best Buy alleges that Ultimate has conducted “a systematic campaign of false and misleading advertising” by claiming that its prices are lower than Best Buy’s.
Richfield, Minn.-based Best Buy filed the lawsuit recently in U.S. District Court in Minneapolis.
The suit takes issue with Ultimate Electronics’ advertising campaign in which it says, “Every day we shop Wal-Mart and Best Buy then adjust our prices to beat theirs, so you know we have the lowest electronics prices period.”
Yet the advertising claims “are literally false because Ultimate’s prices are frequently higher than Best Buy’s for the same items,” according to the lawsuit.
Ultimate Electronics owner Mark Wattles said Monday in a statement that the firm “is and has always been committed to providing our customers with low prices. We strive every day to provide them with … the lowest prices by shopping our competitors.”
Best Buy is seeking court orders to stop Ultimate from continuing the ad campaign and requiring it to run “corrective advertisements.”
The Better Business Bureau also has taken issue with the Ultimate Electronics ads. The BBB’s Denver office has given the company an “F” rating for the marketing campaign and for failing to answer or resolve consumer complaints.
“Lowest-price claims should generally not be trusted unless they can be proven or are backed by some kind of ‘meet-or-beat’ guarantee,” said Dale Mingilton, president of the Denver/Boulder BBB. “Ultimate Electronics never provided anything to our office that substantiates its claims, and that is the main reason for their F rating.”
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
