La. Admin. Code tit. 16 § III-307

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-307 - Comparison to Seller's Future Prices

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.

La. Admin. Code tit. 16, § III-307

Promulgated by the Department of Justice, Office of the Attorney General, LR 21:34 (January 1995).

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