The head of VarsityBooks.com lashed out yesterday at college bookstores who are suing the company over claims of false and misleading advertising. Chief Executive Officer Eric J. Kuhn portrayed the suit as an attempt by profit-motivated stores to deny students "choice, convenience and discounts."

"This lawsuit is completely without merit," said Kuhn. "Old guard monopolists are threatened by the new kid on the block."

The suit, brought by the National Association of College Stores (NACS), challenges VarsityBooks.com's claim that it offers savings of up to 40 percent. The lawsuit contends that only a small percentage of its books are offered at 40 percent below what it calls the "Suggested Price."

The suit does not seek monetary damages, but seeks an injunction to force the company to change its advertisements.

NACS represents over 3,000 college bookstores, including the Harvard Coop.

The suit reflects the increasing competition between Internet book vendors and college bookstores. Over the past year new on-line retailers have emerged, offering students options beyond the traditional campus store.

By cutting out overhead costs such as inventory expenses and large staff, virtual bookstores can offer prices below retail. Yet how much of a discount on-line vendors offer is a matter of dispute.

Kuhn responded to the claims of false advertising by noting that consumers understand that savings of "up to 40 percent" does not imply that all books are discounted by that amount. He said consumers are capable of informed comparative shopping .