PURPOSE: The attorney general administers and enforces the provisions of the Merchandising Practices Act, Chapter 407, RSMo. The attorney

Judith K. Moriarty

(E/31/94)

Chapter 94raudulent and Qmissive Acts and Practices

general may make rules necessary to the administration and enforcement of the provisions of Chapter 407, RSMo and, in order toprovide notice to thepublic, may specify meanings of terms 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. Methods, acts, uses and practices specified are not intended to be an all inclusive list of misrepresentation, but this rule enumerates the specific acts and practices which are misrepresentations and are viol&e of section 407.020, RSMo.

1. (1) It is a misrepresentation for any person in connection with the advertisement or sale of merchandise to make any fraudulent assertion.

2. (2) An assertion is fraudulent if the person intends his/her assertions to induce a consumer to purchase merchandise, and the person-

   1. (A) Knows or believes that the assertion is not in accord with the facts; or
   2. (B) Knows that he does not have a reasonable basis for his/her assertion (see Restatement, Second, Contracts, section 162).

   Auth: sections 407.020, RSMo (Cum. Supp. 199.2) and 407.145, RSMo (Cum. Supp. 1993).* Original rule filed March l&1994, effective Sept. 30,1994. ‘Original authority: 407.020, RSMo (1967), amended 1973, 1985, 1986, 1992 and 407.145, RSMo (19861, amended 1993.