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False advertising laws are put out by the FTC, Federal Trade Commission. I'm no expert, but they deal mainly with Print, Radio, and Television ads and not in-store advertising. There are deceptive practices laws around too, but good luck getting a conviction on a "mistake" of mis-labelling a product. Just because you pick an item up at the store, and they tell you it is a different price at the register doesn't mean anything illegal happened. If you paid for it, took it home, and then they called you up and said, wait, you owe us $100 more for that, then I would say you have a case.
I agree that the store is crazy trying to sell a crappy couch for that much. But just because they are crazy doesn't mean they did something illegal.
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