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    Ask the Advocate

    The day after Thanksgiving marks the beginning of pre-season sales. For the next month , we’re going to see a blizzard of holiday advertisements. Do the terms sale, discounted, reduced, wholesale, and below cost mean that you are getting a good price?

    You have to look beyond the word “sale” at the store or in the advertisement. Check sale prices against the price offered by other sellers. Merchants spend large amounts of money to attract consumers into buying their products.  It’s therefore important to know whether their products are truly sale priced or not.” “Many items seem to be on sale almost all the time, and it is extremely difficult for the average shopper to determine whether the sales price is really a bargain."

    Here are some useful tips:

    • A sale must really be a sale. If a "sale" runs everyday of the year, the "sale price" is really the businesses' regular price. 
       
    • A sale price can only be advertised if it represents an actual and authentic price reduction from the seller's customary retail price or if it represents a savings from the regular price charged by other sellers in the trading area.
       
    • Discounted introductory offers or other references to higher future prices must, in fact, be followed by higher prices.
       
    • Price reductions must be significant, at least five to ten percent.
       
    • A general offer of price reductions cannot apply to a small number of items in the store.
       
    • “Suggested retail” and “list” prices must refer to prices in which a substantial number of goods have been sold in the trade area. Otherwise, the price reference is fictitious and the consumer isn’t really obtaining a cost savings.

    Happy Shopping!

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