FTC Retains Retail Food Store Advertising and Marketing Practices Rule | Practical Law

FTC Retains Retail Food Store Advertising and Marketing Practices Rule | Practical Law

After completing a regulatory review, the Federal Trade Commission (FTC) has decided to retain its Retail Food Store Advertising and Marketing Practices Rule (Retail Marketing Rule). The FTC also issued additional guidance concerning the Retail Marketing Rule's coverage.

FTC Retains Retail Food Store Advertising and Marketing Practices Rule

Practical Law Legal Update 1-589-7525 (Approx. 3 pages)

FTC Retains Retail Food Store Advertising and Marketing Practices Rule

by Practical Law Commercial
Published on 25 Nov 2014 • USA (National/Federal)
After completing a regulatory review, the Federal Trade Commission (FTC) has decided to retain its Retail Food Store Advertising and Marketing Practices Rule (Retail Marketing Rule). The FTC also issued additional guidance concerning the Retail Marketing Rule's coverage.
On November 25, 2014, the Federal Trade Commission (FTC) issued a final rule to announce that it is retaining its Retail Food Store Advertising and Marketing Practices Rule (Retail Marketing Rule) (16 CFR pt. 424).
Under the Retail Marketing Rule, retail food stores are prohibited from advertising prices for food, grocery products or other merchandise unless those stores have the advertised products in stock and readily available at, or below, the advertised prices. Retail food stores do not violate this rule if they:
  • Order advertised products early enough and in sufficient quantities to meet reasonably anticipated demand.
  • Issue rainchecks for the advertised products.
  • Offer similar products at prices that are comparable to the advertised products' prices.
  • Offer other compensation at least equal to the advertised value.
As part of a regulatory review, the FTC solicited comments on August 18, 2011 to determine whether there is a continuing need for the Retail Marketing Rule. The FTC decided to retain this rule because it:
  • Does not impose significant costs on retail food stores.
  • Benefits consumers, since market or state regulatory forces alone would not adequately protect consumers.
The FTC also clarified that this rule applies to traditional food retailers and nontraditional food retailers, including:
  • Supercenters.
  • Warehouse clubs.
  • Dollar stores.
  • Drug stores.
Food retailers should take note of this rule and remember their continuing obligations and liabilities under the Retail Marketing Rule.