12.2.7.16

Use of sale terminology:

1. 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.
2. 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.
3. 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”.
4. 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.

5. 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.

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