Legal Issues to Know Before Offering a Sale or Coupon

Discounts, sales, coupons and other forms of promotional pricing are governed by the Federal Trade Commission (FTC) and regulations at the individual state level. The FTC rules can be found in the Guides Against Deceptive Pricing, commonly known as “The Guides.” The Guides aim to protect customers from deceptive … See more

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Coupon Regulation: Legal Aspects Of Discount Vouchers: A Primer …

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Jun 10, 2024 · To illustrate, consider a scenario where a retailer issues a coupon offering a 50% discount on all items, but the fine print reveals that the offer is only valid for purchases over …

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Five Common Legal Pitfalls For Sales Promotions: Avoiding Costly ...

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Nov 18, 2024 · For example, if a business offers a product for sale at $10 and advertises that its retail value is $20, a substantial number of retailers in the area must offer the product for sale …

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The Legal Ramifications Of Sales Promotions - Chron.com

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For example, if your town's bank has a promotion that offers $100 to new checking accounts opened within a specific time period, but does not write that $100 off as a marketing expense …

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FAQs about Legal Issues to Know Before Offering a Sale or Coupon Coupon?

What legal issues should you know before launching a sale or coupon?

Here are some legal issues to know before launching a sale or coupon at your venture. Discounts, sales, coupons and other forms of promotional pricing are governed by the Federal Trade Commission (FTC) and regulations at the individual state level. The FTC rules can be found in the Guides Against Deceptive Pricing, commonly known as “The Guides.” ...

Should you offer a coupon discount or a sale?

These types of promos can help your business incentivize repeat visits, upsell a low-volume product and otherwise reward customers for their brand loyalty. However, before you host a sale or offer a coupon discount, make sure you’re aware of the legal regulations in place to protect customers. ...

Are couponing and cross-couponing legal?

No federal or state laws prohibit couponing or cross-couponing, but many states have laws for specific industries that limit discounts. For example, to protect their farmers, several states (such as Louisiana and Colorado) have dairy laws that restrict how much dairy products can be discounted. ...

Should you run a sale or discount?

However, you can open your business to the risk of a lawsuit if customers believe you are using price inflation or confusing coupon terms and conditions to trick people into buying more. The best option when running a sale or discount is to make sure you’re offering genuine value to your customers. Sale prices should be meaningful and significant. ...

Is it deceptive to offer a lower price?

“The FTC considers it deceptive to offer an item for sale at a higher price for a short period of time in order to support a claim that an item is discounted when the price is then lowered,” Thomson Reuters Practical Law states. ...

What should a company disclose on a free offer?

Companies should clearly and conspicuously disclose any conditions or limitations on a free offer in close proximity to the word “free,” such as: A required purchase of an item to get the free item. Payment of shipping and handling. ...