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- Advertising Review:
BBB promotes truth in advertising by contacting advertisers whose claims conflict with the BBB Code of Advertising. These claims may come to our attention from our internal review of advertising, consumer complaints and competitor challenges. BBB asks advertisers to prove their claims, change ads to make offers more clear to consumers, and remove misleading or deceptive statements.
On 11/1/2023, BBB contacted the business regarding their advertised products on their website. The business advertised a price comparison of their own selling price and was asked to show proof that the business has sold their rugs at the original price as required by BBB’s Code of Advertising.
The business advertised the following product on their website:
A review of your website https://beautifulrugs.com/ , we have found the following:
Mutlicolor Rug, Mauve Rug, Persian Qum Wool Rug
Price: $2,800.00
Sale Price: $2,240.00
Save: $560.00 (20%)
8x11 Rug, Orange Red Persian Tabriz Wool and Silk Rug
Price: 21,000.00
Sale Price: 15,800.00
Save: 5,200.00 (24.8)
The BBB Code of Advertising States:
3. Comparison with own former selling price
3.1 The former price must be the actual price at which the advertiser has openly and actively offered the product or service for sale, for a reasonably substantial period of time, in the recent, regular course of business, honestly and in good faith.
3.2 Where the former price is genuine, the bargain being advertised is a true one. If, on the other hand, the former price being advertised is not bona fide, the bargain being advertised is a false one.
3.2.1 For example, where an artificial, inflated price was established for the purpose of enabling the subsequent offer of a large reduction, the consumer is not receiving the usual value expected. In such a case, the “reduced” price is, in reality, probably just the seller's regular price.
3.3 Offering prices, as distinguished from actual former selling prices, may be used to deceptively imply a savings. In the event few or no sales were made at the advertised comparative price, the advertiser must make sure that the higher price does not exceed the advertiser's usual and customary retail markup for similar products or services.
3.4 Descriptive terminology often used by advertisers includes: “regularly,” “was,” “you save $ _____,” and “originally.” If the word “originally” is used and the original price is not the last previous price, that fact must be clearly and conspicuously disclosed by stating the last previous price, or that intermediate markdowns may have taken place, for example, “originally $400, formerly $300, now $250,” “originally $400, intermediate markdowns taken, now $250.”
The BBB had a call with the business on 11/6/2023, the business stated they have made changes to their website and replaced "Price' with "Original Price" but still kept the comparison "sale" price next to every item sold.
However, according to the Code of Advertising under sec 9 Sales, it states that "A time limit must be observed". So after some time, the business has end a sale and go back to the original price also show that it was sold at that price for some time. Only then do we know that the products on the website were actually on a true "sale". The business has declined to make any more adjustments to their website as of 11/9/2023.
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