N.M. Admin. Code § 12.2.7.8

Current through Register Vol. 35, No. 21, November 5, 2024

Section 12.2.7.8 - IDENTIFICATION OF BASIS FOR PRICE COMPARISON REQUIRED

A. Except as provided in this rule, it is an unfair and deceptive trade practice to mark, label or otherwise advertise Native American jewelry or arts and crafts at any price other than the actual, good faith retail price at which the seller offers and intends to sell the goods to the public.

B. Except as provided in Subsection B of 12.2.7.9 NMAC, it is an unfair and deceptive practice for a seller to advertise using a price comparison or claim of savings as to any good offered for sale unless the seller clearly and conspicuously discloses the basis or source of the price comparison or savings claim.

(1) Comment: It is a prevalent advertising practice in the retail Native American jewelry and arts and crafts industry to compare, directly or indirectly, a seller's price to another's price for the purpose of emphasizing the bargain to be had. The attorney general has received numerous inquiries and complaints from consumers, artists and retailers regarding misleading and deceptive advertising in the form of the perpetual sales, fictitious reference prices, fictitious discounts and the absence of a bona fide reference price.

(2) Comment: Often consumers rely upon advertising which contains an implied or express comparison between prices or the offer of a price reduction to make purchasing decisions. Consumers can be misled or deceived as to the existence or amount of a bargain when such advertisements utilize a fictitious reference or former price, or imply a "regular" price that has been established only to create the illusion of a bargain. Sellers have also complained about such advertising practices as an unfair method of competition.

(3) Comment: The Unfair Practices Act prohibits deceptive representations in connection with the sale or lease of goods or services, the making of false or misleading statements of fact concerning the price of goods and the existence of or amounts of price reductions. Under the act, it is also unlawful to fail to state a material fact if such failure deceives or tends to deceive the public. Regulations are needed to ensure that price comparison advertising and other savings claims are not unfair, deceptive or misleading. The attorney general has determined that regulation of price comparison advertisements and other savings claims in the affected industry is in the interest of the citizens of New Mexico.

N.M. Admin. Code § 12.2.7.8

7/15/98; 12.2.7.8 NMAC - Rn, 1 NMAC 2.7.8, 02/14/08