Current through Register 1531, September 27, 2024
(1) No
advertisement containing an offer to sell a product shall be made when the
offer is not a bona fide effort to sell the advertised product.
(2) No statement or illustration shall be
used in any advertisement which creates a false impression of the grade,
quality, make, value, currency of model, size, color, usability, or origin of
the product offered, or which may otherwise misrepresent the product in such a
manner that later, on disclosure of the true facts, there is a likelihood that
the buyer may be switched from the advertised product to another.
Even though the true facts are subsequently made known to the
buyer, the law is violated if the first contact or interview is secured by
deception.
(3) No act or
practice shall be engaged in by an advertiser or seller to discourage the
purchase of the advertised product as part of a bait scheme to sell another
product.
For example, among acts or practices which will be considered
in determining if an advertisement is a bona fide offer are:
(a) The refusal to show, demonstrate, or sell
the product offered in accordance with the terms of the offer.
(b) The disparagement by acts or words of the
advertised product or disparagement with respect to the guarantee, credit
terms, availability of service, repairs or parts, or in any other respect, in
connection with it.
(c) The failure
to have available at all outlets listed in the advertisement a sufficient
quantity of the advertised product to meet reasonably anticipated demands,
unless the advertisement clearly and adequately discloses that supply is
limited and/or the product is available only at designated outlets.
(d) The refusal to take orders for the
advertised product to be delivered within a reasonable period of
time.
(e) The showing or
demonstrating of a product which is defective, unusable or impractical for the
purpose represented or implied in the advertisement.
(f) Use of a sales plan or method of
compensation for salesmen or penalizing salesmen, designed to prevent or
discourage them from selling the advertised product.
(4) No practice shall be pursued by an
advertiser or seller in the event of sale of the advertised product of
obtaining or attempting to obtain a rescission of the sale for the purpose of
selling another product in its stead. Among acts or practices which are
relevant in determining if the initial sale was in good faith, and not a
stratagem to sell another product are:
(a)
Accepting a deposit for the advertised product, then switching the buyer to a
higher-priced product.
(b) Failure
to make delivery of the advertised product within a reasonable time or to make
a refund.
(c) Disparagement by acts
or words of the advertised product, or disparagement with respect to the
guarantee, credit terms, availability of service, repairs, or in any other
respect, in connection with it.
(d)
The delivery of the advertised product which is defective, unusable or
impractical for the purpose represented or implied in the advertisement. Sales
of the advertised product do not preclude the existence of a bait and switch
scheme if the sales are a mere incidental by-product of the fundamental plan
and are intended to provide an aura of legitimacy to the over-all
operation.
