20-002 Code Vt. R. 20-030-002-X - PRICE DISCLOSURE RULES FOR HOME FOOD SERVICE PLAN SALES

Section 1 DEFINITIONS

As used in this section, the following words and phrases shall have the following meanings:

a. Buyer. "Buyer" means both the actual and prospective purchaser, but does not include persons purchasing for resale.

b. Food Item. "Food Item" means each edible food product sold as part of a home food service plan, including, but not limited to, each constituent part or kind of meat cut from a primal source, each kind of whole poultry or poultry part, seafood products, and any other item of food intended for human consumption.

c. Home Food Service Plan. "Home Food Service Plan" means any combination of food items, or food items in combination with any non-food item and/or services, sold or offered for sale to a consumer, in person, in the consumer's home, whether or not a membership fee or similar charge is involved.

d. Membership Fee. "Membership fee" means an optional one-time charge by a seller of home food service plans to a buyer which allows the buyer to obtain special benefits, such as price savings, not available to nonmembers. In order for a membership fee to be exempt from inclusion in the unit price the seller must inform the buyer of the option to purchase the membership, or not to do so, prior to the time of sale.

e. Non-Food Item. "Non-Food Item" means each inedible product sold as part of a home food service plan, including, but not limited to, paper products, health and beauty products, detergents, cleaners and disinfectants, rolls of wrapping and like products.

The term does not include food items and durable consumer goods such as appliances.

f. Primal Source. "Primal Source" means the following cuts:

(i) for beef, the primal sources are the round, flank, loin, rib, plate, brisket, chuck and shank;

(ii) for veal and lamb or mutton, the primal sources are the leg, flank, loin, rack (rib), and shoulder; and

(iii) for pork, the primal sources are the belly, loin, ham, spareribs, shoulder, and jowl.

g. Reasonable delivery charge. "Reasonable delivery charge" means a service fee charged for the actual delivery of a home food service plan which does not exceed fees of $ 100.00 or 10% of the total cost of the plan, whichever is greater.

h. Seller. "Seller" means any person, partnership, corporation or association, however organized, engaged in the sale of a home food service plan.

i. Unit Price. "Unit Price" means the retail price of a food or non-food item sold as part of a home food service plan, computed to the nearest tenth of one cent when less than one dollar and to the nearest cent when one dollar or more. The unit price shall be expressed in terms of the price per unit of weight, measure, or count as set forth in the "Uniform Unit Pricing Regulation" in the current edition of National Institute of Standards and Technology handbook 130, or as otherwise established by rule. It shall include all charges except membership fees and reasonable delivery charges.

Section 2 PRICE DISCLOSURE REQUIREMENTS

a. Prior to the execution of a contract (whether verbal or written) for the sale of a home food service plan, the seller shall provide the buyer with a price disclosure document which shall clearly and conspicuously disclose the following information:

(i) the name, address and telephone number of the seller.

(ii) the true identity of each item being offered for sale including, where applicable, the United States Department of Agriculture quality grade of the item, if graded; the primal source; and the brand or trade name.

(iii) the unit price for each food item or non-food item offered for sale.

(iv) the total reasonable delivery charges, if any.

(v) the membership fee, if any, and

(vi) the total price of the home food service plan including the price of the food and non-food items, and the price of any reasonable delivery charge and any membership fee.

b. If a delivery charge is assessed, the seller shall itemize the components of the cost of delivery and total price to be charged for the delivery.

c. If a membership fee is assessed, seller shall provide buyer with a written statement of the terms, conditions, benefits and privileges of membership.

Section 3 FILING REQUIREMENTS

All persons selling, or offering for sale, home food service plans shall provide the Consumer Assurance Section of the Vermont Department of Agriculture, Food and Markets with a copy of all unit price disclosure forms on or before January 15th of each year and upon demand of the Department.

Notes

20-002 Code Vt. R. 20-030-002-X

Effective Date: January 1, 1994 (Secretray of State Rule Log # 93-83)