Statutes, codes, and regulations
New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKINGChapter 2 - CONSUMER PROTECTION
Part 7 - COMPARATIVE PRICE ADVERTISEMENTS AND SAVINGS CLAIMS FOR THE NATIVE AMERICAN JEWELRY AND ARTS AND CRAFTS RETAIL INDUSTRY
Section 12.2.7.16 - USE OF SALE TERMINOLOGY

N.M. Admin. Code § 12.2.7.16

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Current through Register Vol. 35, No. 23, December 10, 2024
Section 12.2.7.16 - USE OF SALE TERMINOLOGY
A. It is an unfair and deceptive practice for a seller to use terms such as "sale," "sale price," "now only $_______________" or other words and phrases that imply a price savings unless the price of the good is reduced by no less than 10% from the former price of the good. If the seller reduces the price by 10% or more from the former or regular price, a rebuttable presumption exists that the price reduction was of a reasonable amount.
B. The term "sale" may be used in an advertisement where not all goods are offered at a reduction from the former or regular price if the goods to which the sale applies are clearly and conspicuously identified.
C. It is an unlawful and deceptive trade practice for a seller to use such terms as "sale" or "sale price," unless the goods offered have been offered to the public openly and honestly, in good faith, for a reasonably substantial period of time, at a former price of at least 10% more than the "sale price".
D. No sale which is legitimate under these rules shall exceed 30 consecutive days in length, except for a going-out-of-business sale which complies with the requirements of the New Mexico Distress Sales Act, Section 57-10-1 NMSA 1978 (1967) et seq. Comment: Because other provisions of this rule require that sellers offer goods at the regular retail price for a "reasonably substantial period of time" prior to placing them on sale, an attempt to circumvent Subsection D of 12.2.7.16 NMAC, by offering goods at the regular retail price for a short period of time (e.g., one week) following a sale, and then putting them back on sale, will constitute a violation of this rule.
E. A seller who conducts a sale which complies with 12.2.7.16 NMAC herein shall not be required to re-mark or relabel the prices of all items placed on sale (see Subsection A of 12.2.7.8 NMAC) during the term of the sale; provided that, if, following the completion of a legitimate sale, the seller wishes to permanently reduce the price of sales merchandise which was not sold, the seller must re-mark and re-label all such inventory to reflect the new, lower retail price.

N.M. Admin. Code § 12.2.7.16

7/15/98; 12.2.7.16 NMAC - Rn, 1 NMAC 2.7.16, 02/14/08