The state Office of Consumer Protection alleges that Dick and Jack Industries of Los Angeles, "failed to substantiate" advertisements touting deeply discounted prices.
The suit, which was filed in Circuit Court on Tuesday, said Hawaii consumers could be "irreparably" harmed unless the court orders the company to back its claims.
Doug Neistat, an attorney for Dick and Jack Industries, declined comment on the specifics of the suit, saying he hasn't seen it yet. But he promised to work with the state to resolve the issue.
"The company has a long history in Hawaii and a big future ahead," Neistat said. "And I think it has been a good corporate citizen."
The suit alleges that the company began an advertising campaign last spring in Honolulu's daily newspapers, touting "liquidation" programs with discounts between 65 percent and 70 percent.
Dick and Jack Industries filed for bankruptcy reorganization in California in November 1994, according to Jeffrey Brunton, staff attorney with the Office of Consumer Protection.
The lawsuit does not state that the advertisements were deceptive or unfair but states that the company has failed to substantiate its ad claims as the state requested. Under Hawaii regulations, the state can demand jewelers to provide a written report backing their ad claims, the suit states.
The complaint is part of a wider probe by the state into local jewelers who have promised deep discounts in their advertising claims. Last June, Russell Blair, then director of the state Office of Consumer Protection, told 10 local jewelers to substantiate their advertising claims.
The state inquiry came after the Star-Bulletin last May reported concerns raised by members of the Hawaii Jewelers Association about deep discounting advertising practices in their industry.