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Can I offer discounts or promotions without violating pricing laws in Alaska? What are the requirements?
To offer discounts or promotions in Alaska, you must comply with the regulations set forth in AKST 45.25.450. According to this section, a motor vehicle dealer may not make a price comparison, price reduction, or price discount in an advertisement unless the comparison, reduction, or discount complies with this section.
A motor vehicle dealer may advertise a price comparison for a new motor vehicle with the manufacturer’s suggested retail price only if the dealer only uses the term “manufacturer’s suggested retail price,” “MSRP,” or “list price”; the advertised price references the final price listed by the manufacturer on the Monroney sticker; and the manufacturer’s suggested retail price, MSRP, or list price does not include charges added by the dealer or options added to the vehicle by the dealer.
A motor vehicle dealer may not use a competitor’s price as a reference price unless the reference price is the competitor’s current, bona fide price in the trade area of the dealer making the comparison; the comparison is to an identical or nearly identical vehicle that does not materially differ in model, style, design, name, brand, kind, or quality from the advertised product; and the dealer includes in the advertised price all charges that the competitor includes in the competitor’s price.
A motor vehicle dealer may advertise a price comparison for a used motor vehicle only if the reference price is the retail value of the vehicle as specified in the current edition of a nationally recognized valuation publication for used motor vehicles.
When advertising a price comparison for a used motor vehicle, the advertisement must identify the source of the reference price, and the motor vehicle dealer shall make this source available to a potential retail buyer on request.
In addition, AKST 45.66.070 applies to a sale of, or an offer to sell, a business opportunity if the offer originates in Alaska, is directed by the offeror to Alaska and received at the place to which the offer is directed, or the buyer is domiciled in Alaska and the business opportunity is or will be operated in Alaska.
Furthermore, AKST 45.50.474 requires that a person conducting a promotion on board a cruise ship that mentions or features a business in an Alaska port that has paid something of value for the purpose of having the business mentioned, featured, or otherwise promoted, must clearly and fully disclose in all written materials used in the promotion that the featured businesses have paid to be included in the promotion.
Therefore, to offer discounts or promotions in Alaska, you must ensure that they comply with the regulations set forth in AKST 45.25.450, AKST 45.66.070, and AKST 45.50.474.
Jurisdiction
Alaska