La. Admin. Code tit. 16 § III-317

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

Section III-317 - Use of Sale Terminology

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.

La. Admin. Code tit. 16, § III-317

Promulgated by the Department of Justice, Office of the Attorney General, LR 21:36 (January 1995).

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