Louisiana Administrative Code
Title 16 - COMMUNITY AFFAIRS
Part III - Consumer Protection
Chapter 3 - Deceptive Pricing
Section III-317 - Use of Sale Terminology

Universal Citation: LA Admin Code III-317

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

A. It is a deceptive act or practice for a seller to use terms such as "sale", "sale prices", "now only $ ____", or other words and phrases that imply a price savings unless the price of the merchandise is reduced by a reasonable amount from the former price of the merchandise. If the seller reduces the price by 5 percent or more from the former price, a rebuttable presumption exists that the price reduction was of a reasonable amount. However, the term "sale" may be used in an advertisement where not all items are offered at a reduction from regular price if the items are clearly and conspicuously identified.

B. You may not advertise a "sale" or use words that mean the same thing unless you have made reasonable reductions from the regular selling price of your sale merchandise. What is a reasonable reduction will depend on the profit margins typical in your industry.

1. The rule provides that a reduction of 5 percent is to be considered reasonable unless we can prove otherwise. If you advertise a sale based on price reductions of less than 5 percent, you will need to show why a smaller reduction is reasonable in your case.

2. Of course, these reductions must be based on authentic regular prices and not phony ones. You may also have a sale that doesn't include all of the goods in your store, but only if you make that limitation clear in your ad.

Example:

TV and VCR SALE !

10% Off All TV's! Special Group of VCR's 20% Off!

Other merchandise at regular prices

3. This ad complies with the rule as long as:
a. all television sets are available at 10 percent off;

b. a reasonable number of VCR's are available at 20 percent off; and

c. both discounts are based on the actual regular selling prices.

Note that the ad makes it clear that only the TVs and VCRs are on sale.

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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