Use of Sale Terminology

PURPOSE: The attorney general administers and enforces the provisions of the Merchandising Practices Act, Chapter 407, RSMo (1986). This rule specifies acts and practices that are deemed to be violative of section 407.020, RSMo (1986). (1) A seller shall not use terminology implying a reduction from a price in effect immediately prior to the advertisement (examples: sale, sale prices, now only $____) unless— (A) The reduction is, in fact, from a bona fide regular price in effect immediately prior to the advertisement; and (B) The reduction is meaningful. There shall be a rebuttable presumption that the reduction is not meaningful if the reduction in price is less than five percent (5%), unless the seller clearly discloses the actual price reduction. (2) The term sale may be used notwithstanding the fact that not all products appearing in the advertisement are offered at reduced prices, if the advertisement clearly identifies which products are not reduced in price. AUTHORITY: sections 407.020 and 407.145, RSMo 1986.* Original rule filed June 25, 1990, effective Nov. 30, 1990. *Original authority: 407.020, RSMo 1967, amended 1973, 1985, 1986 and 407.145, RSMo 1986.