Michigan Attorney General Jennifer Granholm is threatening to file a lawsuit against the Circuit City electronic store chain.

Granholm said the Virginia-based Circuit City Stores Inc. violated Michigan consumer protection laws at its 23 stores across the state by not providing rain checks for specially advertised items not available for purchase during the sale period.

Circuit City spokesman Bill Cimino said the company was “puzzled by (Granholm’s) notice.”

Granholm filed a Notice of Intended Action, which allows Circuit City 10 days to respond and begin settlement negotiations. If no settlement is reached, the state could take the company to court.

“Luring customers to a store using bargain advertising for a product that’s not in stock, then relying on them to buy a higher-priced substitute, simply isn’t playing fair,” Granholm said.

The attorney general’s notice cited three recently advertised products, which included a Sony digital camera on sale for $799.99, a PrimaScan color scanner for $49.99 and a leather camera bag for $4.99.

East Lansing resident Craig Noonan, 26, said as a consumer, he found it somewhat reassuring when he heard of Granholm’s intentions.

“It’s good to know they are doing something to try and right a wrong,” he said. “It’s a positive thing. But until something concrete is found, I don’t have much faith in the system.”

Granholm said when Circuit City was notified of consumer complaints, the company responded that rain checks weren’t available on limited quantity or clearance items.

“As far as we have understood, our advertising does comply with (Michigan) state law,” Cimino said.

Michigan is the only state involved in a case against the electronic chain thus far, according to Granholm’s office.

Cimino said Circuit City officials plan to arrange a meeting with Granholm’s office as soon as possible.

The Associated Press contributed to this report.