Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC to keep Food Store Unavailability Rule in its current form, (Nov 20, 2014)
The Retail Food Store Advertising and Marketing Practices Rule (the Unavailability Rule) will be left in its current form, the FTC has decided. The decision was made as part of the Commission’s systematic review of all of the agency’s rules and guides, according to the agency’s news release.
Originally issued in 1971, the Unavailability Rule prohibits retail food stores from advertising products for sale at a certain price when the products are not in stock or readily available to customers at the stated price during the effective period of the advertisement. However, the rule also provides exceptions for advertisements that clearly disclose that supplies are limited or that products are available only at some outlets.
Additionally, a violation of the Unavailability Rule does not occur if: (1) the advertised products were ordered in adequate time for delivery in quantities sufficient to meet reasonably anticipated demand; (2) the food retailer offers a “raincheck” for the advertised products; (3) the food retailer offers at the advertised price or at a comparable price reduction a similar product that is at least comparable in value to the advertised product; or (4) the food retailer offers other compensation at least equal to the advertised value.
News: Advertising FederalTradeCommissionNews