PURPOSE: The attorney general administers and enforces the provisions of the Merchandising Practices Act, Chapter 407, RSMo. The attorney general may make rules necessary to the administration and enforcement of the provisions of Chapter 407, RSMo and, in order to provide notice to the public, may specify the meaning of terms whether or not used in the Act. This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application.

1. (1) Unless inconsistent with the definitions provided in Chapter 407, RSMo, the following terms and phrases shall mean:

   1. (A) Actual cost shall mean money expended or credit incurred and no allowance shall be made for the replacement cost of merchandise that the seller is reasonably assured of recouping the replacement cost as part of the price of subsequent sales of the merchandise;
   2. (B) Consumer shall include any person (as defined in section 407.010.5., RSMo) who purchases, may purchase or is solicited for purchase of merchandise;
   3. (C) Disaster area shall mean an area declared to be a disaster area by either state or federal authorities;
   4. (D) Excessive price shall mean a seller's price that is not justified by the seller's actual cost of acquiring, producing, selling, transporting and delivering the actual product sold plus the seller's usual and customary profit margin prior to the onset of the natural disaster;
   5. (E) Good faith shall mean honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade;
   6. (F) Natural disaster shall mean property damage caused by heavy rainfall, storm, tornado, flooding or earthquake; and
   7. (G) Necessity shall include all materials and services related to, but not limited to, food, water, medical treatment, sanitation, construction, repair and transportation.

AUTHORITY: sections 407.020, RSMo (Cum. Supp. 1992) and 407.145, RSMo (Cum. Supp. 1993).* Original rule filed March 18, 1994, effective Sept. 30, 1994. *Original authority: 407.020, RSMo (1967), amended 1973, 1985, 1986, 1992 and 407.145, RSMo (1986), amended 1993.