Current through Register Vol. 50, No. 12, December 20, 2024
A. It is a deceptive act or practice for a
seller to make an introductory offer or to compare its current price for
merchandise with the price at which the merchandise will be offered in the
future, unless:
1. the future price takes
effect within a reasonable time after the introductory offer or price
comparison is published; and
2. the
future price of the merchandise is, subsequent to the end of the introductory
sale, properly established as the seller's regular and customary
price.
B. Sometimes you
may want to use ads that compare your current prices with a price you plan on
charging at some time in the future. For example, you may want to run an
introductory offer on some new products or the manufacturer may have announced
a wholesale price increase that you intend to pass on to consumers after you
sell out your existing stock.
1. Under this
rule, it is okay to compare your current price with your future price as long
as both of the following conditions are met:
a. the advertised future price actually takes
effect within a reasonable time; and
b. when it does take effect, the future price
becomes your regular and customary price.
2. Unless there are special circumstances, a
reasonable time is probably not more than 90 days.
Example:
|
$10 Off!
|
Introductory Price $19.99
|
a. To back up
this ad, you need to be able to show that your regular price for this product
actually became $29.99 within a relatively short time after this ad appeared.
Phrases such as "Introductory Offer," "Advance Sale," "Pre-season Sale," and
"Will Be" alert your customers to the temporary nature of this low price
offer.
b. Be careful that you don't
confuse consumers when you advertise an introductory price on the price tag.
Normally, when a price tag has two prices on it, consumers will assume that the
higher price is the old price. But that is not the case with introductory
offers. You will want to make it clear that the higher price is the new one;
that is, the one about to go into effect.
AUTHORITY NOTE:
Promulgated in accordance with R.S. 51.1 et
seq.
