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:
- Retailers cannot call a specific price a "sale" price for
more than 30 consecutive days during a 90-day period.
- 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.
- 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.