N.M. Admin. Code § 12.2.7.14

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.2.7.14 - PRICE NEGOTIATIONS

A. Except as provided in this rule, a seller shall offer and sell goods at the marked or labeled retail prices.

B. It is an unfair and deceptive trade practice for a seller to mark and offer goods at prices which he or she does not intend to sell them, for the purpose of being able to negotiate price reductions off the marked or labeled prices, except that a seller may routinely and regularly negotiate price reductions not to exceed 25%, so long as the seller clearly and conspicuously discloses to the prospective purchasers that the prices of the goods offered for sale are negotiable. A seller may, on an infrequent and non-regular basis, accept more than a 25% price reduction as a result of negotiations with a customer.

C. The disclosure that prices are negotiable shall be in writing and posted in a conspicuous manner at each entrance to the seller's place of business, and at each cash register or other place where the seller accepts payment for goods. The disclosure must be no less than 8 by 8 inches at any entrance, and no less than 6 by 8 inches at any cash register or other place where the seller accepts payment for goods. The disclosure must be in bold-face type of 26 point or greater font, and shall state as follows:

PRICES ARE NEGOTIABLE

The prices of [specify goods for which prices are negotiable] are negotiable. The marked or labeled prices of these items are initial asking prices only.

D. Subsection B of 12.2.7.14 NMAC shall not apply to reasonable discounts given to consumers for good faith purchases of more than one object or article from the seller; provided that the seller shall not engage in a pattern and practice of encouraging or permitting a customer to purchase a second low-cost item in order to qualify for the discount.

(1) Example: Consumer is interested in a three hundred dollar ($300) necklace. Seller tells consumer that if she buys a pair of $10 earrings, he will give consumer a 25% multiple purchase discount on the price of the necklace. This transaction violates this rule because the seller-initiated offer of a multiple item discount is intended to circumvent the requirement that merchandise be marked and sold at the actual price.

(2) Example: Consumer asks about a $300 necklace and a $100 ring. Seller tells consumer that she will give a 25% price reduction if consumer buys both items, although any single item purchase will be at the labeled price. This transaction does not violate the rule because the consumer-initiated purchase of more than one item is in good faith and is not intended merely to obtain a price reduction.

N.M. Admin. Code § 12.2.7.14

7/15/98; 12.2.7.14 NMAC - Rn & A, 1 NMAC 2.7.14, 02/14/08