Hobby Lobby to pay $220,000 in NY settlement

ALBANY, N.Y. (AP) — Chain craft store Hobby Lobby has reached a settlement with New York authorities over allegations of deceptive advertising.

New York Attorney General Eric Schneiderman says Thursday that Hobby Lobby Inc. misled customers into thinking they were receiving discounted items over a two-year period, violating the state's General Business Law.

As part of the $220,000 settlement, the craft store will supply $138,600 in supplies to public schools near Hobby Lobby stores upstate and pay $85,000 in civil penalties and other costs. The Oklahoma City, Oklahoma-company will also have to change the way it advertises over the next 60 days.

Hobby Lobby says in a statement that it disagrees with Schneiderman's claims, but is pleased to be providing supplies to schools.

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