27.0688 Introductory offers.

Cite as [A.S.A.C. § 27.0688]

(a) '"Introductory offer" means any printed matter consisting of the words "introductory offer" or words of similar import, placed upon a package containing any new commodity or upon any label affixed on or adjacent to such new commodity, stating or representing by implication that such new commodity is offered for retail sale at a price lower than the anticipated ordinary and customary retail sale price.

(b) The packager or labeler of a consumer commodity may not have imprinted thereon an introductory offer unless:

(1) the product contained in the package is new, has been changed in a functionally significant and substantial respect, or is being introduced in to a trade area for the first time;

(2) each offer on a package or label is clearly and conspicuously qualified;

(3) no commodity so labeled is sold in a trade area for a duration in excess of 6 months",

(4) at the time of making the introductory offer promotion, the offerer intends in good faith to offer the commodity, alone, at the anticipated ordinary and customary price for a reasonably substantial period of time following the duration of the introductory offer promotion.

(c) The packager or labeler of a consumer commodity shall not have imprinted thereon an introductory offer in the form of a "cents-off" representation unless, in addition to the requirements in subsection (b) of this section:

(1) the package or label clearly and conspicuously and in immediate conjunction with the phrase "Introductory Offer" bears the phrase, "......... cents-off the after introductory-offer price";

(2) the commodity so labeled is sold at a reduction from the anticipated ordinary customary price, which reduction is at least equal to the amount of the reduction from the after-introductory-offer price representation on the commodity package or label.

(d) No introductory offer with a "cents-off" representation shall be made available in any circumstance where it is known or there is reason to know that it will be used as an instrumentality for deception or for frustration of value comparison, e.g., where the retailer charges a price which does not fully pass on to consumers the represented price reduction.

(e) The sponsor of an introductory offer shall prepare and maintain invoices or other records showing compliance with this section. The invoices or other records required by this section shall be open to inspection and shall be retained for a period of 1 year subsequent to the period of the introductory offer.

History: Rule 6-76, eff 19 Oct 76, § 74.