B. Sanfield, Inc. v. Finlay Fine Jewelry Corp‪.‬

Argued September 14, 2000 Finlay Fine Jewelry, which sells inexpensive items containing gold at kiosks in department stores nationwide, regularly offers its products at 50% off. Half off what?, one may ask. A discount supposes a regular price, and it developed in a bench trial in this suit under sec.43(a) of the Lanham Act, 15 U.S.C. sec.1125(a), and related state laws, that Finlay does not have one. Every once in a while (but never on a Saturday or during December) Finlay removes the ""sale"" signs and tries to sell its items at higher prices, but less than 3% of its sales are made that way--and if a customer asks for the 50% discount during regular-price days, Finlay is happy to oblige. Nonetheless, the district court found that Finlay's 50%-off and sale signs are not false or even misleading, because customers see through the ruse. 999 F. Supp. 1102 (N.D. Ill. 1998). We vacated that judgment, observing that the judge appeared to confuse falsity with injury from the lie. The district court had not discussed state and federal regulations that define phony ""discounts"" as misleading or false, and thus prohibit the practice. 168 F.3d 967, 970-75 (7th Cir. 1999). We directed the district court to evaluate Finlay's conduct under these rules but noted that plaintiff needs to establish injury if it is to obtain relief. Id. at 975-76.