Section 110.01 Prohibited Acts
It shall constitute an unfair and deceptive trade act and
practice in commerce under
9 V.S.A.
Section 2453(a) for a seller
or solicitor to solicit purchases of goods or services through the use of
former price comparisons, retail price comparisons, comparable value
comparisons, or other miscellaneous price comparisons which are false or
deceptive.
Section 110.02 Former Price Comparisons
(a) A former price
comparison shall be considered deceptive if the amount declared to be the
former price is not the actual price at which the article was offered to the
public for a reasonably substantial period of time in the recent regular course
of the solicitor's business, unless an earlier time period is clearly
specified;
(1) A former price is not an
actual price if it is set at a specific amount for the purpose of establishing
a ficticious [fictitious] higher price on which a deceptive comparison might be
based;
(2) A former price is not an
actual price unless:
(A) the item was offered
for sale for a reasonably substantial period of time at that price and a
substantial quantity of sales were made at that price; or
(B) the item was openly offered for sale to
the public for a reasonably substantial period of time, displayed in a
reasonable manner, consistent with the display of items of similar type, and
priced at a level established in good faith;
(b) A former price comparison shall be
considered deceptive if the seller or solicitor uses the words "sale," "reduced
to," or words of similar import in a solicitation when the reduction from the
actual former price is less than 10% of the actual former price, unless the
solicitation clearly specifies the actual former price and the current sales
price, or clearly specifies the percentage by which the actual former price is
reduced.
Section 110.03 Retail Price Comparisons
(a) A retail price
comparison shall be considered deceptive if the seller or solicitor declares or
suggests that his sales price is a bargain price compared to other sellers in
the trade area or a price which is substantially less than the prices being
charged by other sellers in the trade area unless:
(1) his price is at least 5% lower than the
price at which substantial sales of the item are being made in the trade area;
or
(2) he sets forth at the time he
makes his retail price comparison both his price for the item and the price or
prices being charged by the seller or sellers with whom he is comparing
prices;
(b) A retail
price comparison shall be considered deceptive if the seller or solicitor
declares or suggests that his price is less than list price, regular price, or
manufacturer's suggested price unless:
(1) A
substantial number of sales of the item are being made in the trade area at the
list price, regular price, or manufacturer's suggested price; or
(2) If the seller is the only person in the
trade area selling the particular item, the list price, regular price, or
manufacturer's suggested price meets the qualifications of an "actual former
price" as defined in CF 110.02; or
(3) If the particular item has never been
sold in the area, the list price is that figure at which the seller or
solicitor expects to make a substantial number of sales. At the end of three
months, the list price must meet the qualifications of CF 110.03 (b)(1) or CF
110.03 (b)(2).
Section 110.04 Comparable Value Comparisons
A comparable value comparison shall be considered deceptive if
the seller or solicitor declares or suggests that his price is a bargain price
compared to the price of another item of similar grade and quality
unless:
(a) the other item is in fact
of similar grade and quality; and
(b)
(1) his
price is at least 5% lower than the price at which substantial sales of the
similar item are being made in the trade area; or
(2) he sets forth at the time he makes the
comparable value comparison both his price or prices and the price or prices
being charged by other sellers in the trade area for the item of similar grade
and quality.
Section 110.05 Miscellaneous Price Comparisons
A price comparison shall be deceptive if it contains statements
which declare or suggest conditions which are not true.
Examples of such deceptive price comparisons include:
(a) Advertising a retail price as a wholesale
price; and
(b) Representing prices
to be factory prices when they are not selling at the prices paid by those
purchasing directly from the factory.Statutory Authority:
9 V.S.A.
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2453
