Kokua Line
By June Watanabe
Thursday, March 11, 1999
Kokua Line
In January, Kmart advertised futon frames/mattresses for sale; none were in stock, so rain checks were issued. On Feb. 28, the same item again was advertised, and again, it was not in stock at several Kmarts soon after opening time. Again, Kmart issued rain checks. We now have a collection of supposedly useless rain checks. An employee said the ads are from the mainland and Hawaii has no control over what is being sold here. Is this false advertising? Kmart cuts futon price
to make snafu sit easierThe problem was caused by an "inadvertent error" in the ordering system, according to a response issued by Kmart Corporation, based in Troy, Mich.
Kmart apologized for "the inconvenience" and said it will take an additional $10 off the sale price of the futon for customers waiting to redeem rain checks. Additional supplies of futons are scheduled to arrive in Hawaii in mid-March.
"Kmart's firm intention is to be in stock on all advertised items as well as our daily shelf items," officials said.
In the case of the missing futons, however, the ordering system mistakenly showed Hawaii stores had more of the item on hand for the January ad than they did, officials said. The problem was corrected by the time the February ad ran, they said, but then the shipment for the second ad arrived three days late for Hawaii stores.
"Kmart values the patronage of our Hawaiian customers," officials said. "We strive to deliver the highest level of customer service in all of our stores. One way in which we achieve this goal in Hawaii is through the regional office, which was established here to oversee the merchandising and marketing of products to our stores."
After an item was listed for sale in a Kmart ad in January, I went to purchase it that Sunday morning. The stock didn't run out, there just was no stock available. A sign indicated rain checks were being given. Are there any laws pertaining to non-availability of stock for sale? It is frustrating to make a trip to find out they don't have an item as advertised. This is not the first time.
Kmart officials said there is not enough information to research and respond to your concerns. However, you can send a detailed complaint to Kmart Customer Care Network, 3100 W. Big Beaver Road, Troy, MI 48084.
The state Office of Consumer Protection oversees "Unfair or Deceptive Practices in Advertising," including rules on availability of merchandise.
Executive director Jo Ann Uchida said her staff also has received complaints about advertising involving another large retailer. She said readers with specific advertising complaints about any retailer should call her office, 587-3222.
I received a 1099 miscellaneous tax form from Investors Equity. I could not get a clear answer from anyone -- the attorney for Investors Equity, the IRS or the state tax office -- about whether the payment I received is taxable. Can you find out?
"We are treating that distribution as a taxable payment," said attorney John Yamano, who was hired by the state insurance commissioner to handle the liquidation of Investors Equity.
However, those involved in the case don't want to be put in the position of giving tax advice.
"We cannot determine what would be taxable for each policyholder," he said. That's why his advice is to check with your own accountant or tax preparer.
The payment in question is money above what some 5,000 people had invested in Investors Equity, which was seized by the state in 1994 after losing $100 million. Policyholders got back 100 percent of their investments, plus part of a $20 million special fund, set up with money recovered through lawsuits and sales of assets.
Need help with problems? Call Kokua Line at 525-8686,
fax 525-6711, or write to P.O. Box 3080, Honolulu 96802.
Email to kokualine@starbulletin.com
