But sometimes there are stores that put those signs up just to lure people in – and they're not really closing.
New York State has a law that bans this practice – and now Assistant Attorney General Benjamin Bruce says they’re cracking down to protect people from becoming victims of false advertising.
The state Attorney General's office says some retailers advertise anywhere from 60 percent to 90 percent off in phony closing sales just to get you to buy merchandise.
"I have seen stores that have one price, and then you go in and it's a totally different price,” said shopper Roxanne Reid. “Even on the display it'll say a certain price, then when you take it to the register it's a lot higher than what it is."
In New York State, there's a law meant to protect consumers called the New York State Going out of Business Law.
"The law was put into place to handle what had been widespread fraud in going out of business sales,” said Bruce. “When consumers consider the most attractive offers for products that they might buy, it's in a situation when a company is going out of business."
And when that happens, consumers have a right to expect that the inventory that's on hand is what's for sale.
"They can expect that the prices are going to be lower prices, because they're trying to sacrifice that inventory so that they can close,” Bruce said. “And the law is intended so that the expectation is met by companies."
In order for companies to abide by that expectation, they must receive a permit from the town or city where the business is located indicating that the company is going out of business. This lets customers know it's real.
"The law also requires that when a company gets its license to go out of business, that it puts the license number on its advertising,” said Bruce. “So you'll see this on television ads or you'll see this on print ads or newspapers – or if you see this online, that number has to be there as well."
"If they're advertising that the products are 50 percent off or 75 percent off, and they're really selling it at the regular price that would be another form of false advertising," Bruce added.
The Attorney General's office says it's a big issue. But shoppers we spoke with say they're used to the tactic, and know better than to fall victim to it.
"I've seen advertisements for stores doing that,” shopper Barbara Demay said. “You kind of don't believe it after a while."
"It's a way for the store, I guess, to make a buck," said shopper Bob Teeter.
The New York Attorney General's office also tells us that the only exception to this law is for businesses that sell to other businesses, because those companies don't directly sell to the consumer.
