Deceptive Pricing Action Proposed

December 1998

Professional Insider:In The Industry

Deceptive Pricing Action Proposed

NYC could lead the way

The New York City Department of Consumer Affairs has proposed amendments to strengthen the city's consumer protection laws and wage war against deceptive pricing. The proposals are:

  1. Retailers cannot call a specific price a "sale" price for more than 30 consecutive days during a 90-day period.
  2. If merchandise is discounted, the retailer must have sold at least 10% of the merchandise at the original prediscount price for 14 days immediately before the date of the advertised sale.
  3. A common practice is to discount, then print a disclaimer in small type at the bottom of the ad saying no items may have been sold at the original price. Retailers will have to place the disclaimer next to the discount or print it in lettering at least one-third the size of the lettering of the discount.

These are the toughest and most enforceable regulations so far, said Alan Leopold, executive director of the New York Jewelers Association. If they pass, he hopes they'll pave the way for similar regulations in other cities. NYSJA obtained a Jewelers of America Venture Fund grant to partially fund the campaign to pass the amendments.

About 30 people spoke at a hearing on the proposals Oct. 19, including Lou Fortunoff of Fortunoff Fine Jewelers, New York City, said DCA press secretary Shonna Keogan. As a result of the hearing, changes may be made to the amendments before they go into effect, but it was unclear at press time what the changes might be. We will report any changes of importance to the jewelry industry when they are announced.



Copyright © 1998 by Bond Communications.


 

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