Louisiana Administrative Code
Title 16 - COMMUNITY AFFAIRS
Part III - Consumer Protection
Chapter 3 - Deceptive Pricing
Section III-313 - Comparison to Competitor's Price

Universal Citation: LA Admin Code III-313

Current through Register Vol. 50, No. 9, September 20, 2024

A. It is a deceptive act or practice for a seller to compare the seller's price with a price currently being offered by another seller for merchandise unless the merchandise is comparable merchandise and the comparative price is at or below the price at which the comparable merchandise is currently being offered in the seller's trade area by a reasonable number of other sellers in the same trade area, or another identifiable seller.

B.

1. If you compare your prices with those of the competition, you must either:
a. identify the specific competitor in your ad; or

b. be able to show that a reasonable number of area competitors are offering the product at the advertised comparison price.

2. In addition, in either case the product must be of comparable quality, grade, material, and craftsmanship. Private label and generic brand items are generally not considered comparable to name brand items. Therefore, if you make a price comparison between a private label or generic brand item and name brand item, you must make it clear that the comparison is between name brand and non-name brand items.

Example:

Slacks $21.99

Compare at $29.99

3. This ad is okay if the slacks are comparable in quality, grade, material and craftsmanship, and a reasonable number of area sellers charge a least $29.99. Otherwise, this ad is deceptive.

Example:

House Brand Suits $99

Equal to $159 Name Brand Suits Sold Elsewhere

4.
a. This ad complies with the rule if the suits are comparable and if a reasonable number of sellers charge at least $159 for the name brand suits. Of course, in a real ad, the advertiser would use the name of its particular house brand as well as the actual brand names sold elsewhere.

Example:

Our Price $69

Compare at Jones Hardware, $99

b. Products must be comparable but only Jones Hardware needs to currently be charging $99.

AUTHORITY NOTE: Promulgated in accordance with R.S. 51.1 et seq.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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