La. Admin. Code tit. 16 § III-513

Current through Register Vol. 50, No. 4, April 20, 2024

Section III-513 - Imperfections, Rejects and Distressed Goods

A. Definition. For the purpose of this rule the following definition shall apply.

Distressed Goods-consumer goods which are defaced, scratched, dented, damaged, or have been subjected to conditions that alter their original state, such as fire damage or damage from a natural disaster.

B. It is unfair to sell or offer for sale merchandise which has imperfections, which are rejects, or which are distressed or salvaged goods without first clearly and conspicuously disclosing to all prospective purchasers thereof the imperfections and the identity, status, nature, and the fact of the rejection, distress and salvage.

C. It is unfair to sell or offer for sale merchandise which has no imperfection which is not a reject, and which is not distressed or salvaged in such a manner as to lead any prospective purchaser thereof to believe that same has imperfections, is a reject, or is distressed or salvaged and, if purchased, will, on that account, render a savings on the price of such merchandise.

D. Whoever engages in "misrepresentation of distressed goods, imperfections, and rejects" violates R.S. 51:1405(A)prohibiting, inter alia, unfair and deceptive trade practices; provided further that this rule shall not operate as an exclusive definition of prohibited conduct in the area of trade and commerce to which it applies or in any other area of trade and commerce, and shall not operate as a defense to other activity otherwise deemed to be an unfair method of competition or an unfair or deceptive act or practice in trade and commerce by the State of Louisiana, the Federal Trade Commission, or by the courts of this state or of the United States.

E. If any part of this rule is judicially decreed to be invalid for any reason, the remainder of the rule shall continue in full force and effect, and to this end this rule is declared to be severable.

F. All rules and regulations or parts thereof in conflict herewith are hereby repealed.

La. Admin. Code tit. 16, § III-513

Adopted by the Office of the Governor, Office of Consumer Protection, (July 1975), promulgated by the Department of Justice, Consumer Protection Section, LR 21:953 (September 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:1401 et seq.