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Can I offer discounts or promotions without violating pricing laws in Michigan? What are the requirements?

Here are the requirements for offering discounts or promotions in Michigan without violating pricing laws:

Requirements for offering discounts or promotions in Michigan

Michigan law regulates the advertising and pricing of consumer items offered for sale at retail. The law requires that advertisements for consumer items sold at a sale or special price, or as being reduced in price by an amount or proportion, must meet certain requirements [4.2].

A person shall not knowingly advertise the availability of a consumer item for sale at retail at a sale or special price, or as being reduced in price by an amount or proportion, unless the advertisement meets all of the following:

  • It includes the dates that item is available at the advertised price, or the quantity available at the advertised price.
  • If applicable, it states that the item is available at that price only as long as the advertised quantity lasts or as long as quantities or supplies last.
  • If there is a limitation on the quantity available of a consumer item to each customer, that limitation is clearly disclosed.

If an advertisement does not state the quantity of a consumer item available or meet the requirements above, and if the consumer item cannot be sold at the advertised price throughout the advertised period of sale, the advertiser shall make available to the customer a written guarantee to deliver under the advertised conditions the consumer item at a future date stated in the guarantee, or when notified by the advertiser that the item is available [4.2].

Exceptions

Michigan law requires that the total price of a consumer item offered for sale at retail be displayed at the place of the retail sale, except for certain exceptions [4.4]. These exceptions include:

  • A consumer item that is sold by weight or volume and is not in a package or container.
  • A consumer item sold in a coin-operated vending machine.
  • Prepared food intended for immediate consumption.
  • A consumer item purchased by mail or through catalog order, or that is not otherwise visible for inspection by the consumer at the time of the sale, and that is ordered or requested by the consumer, if the price of the consumer item is on the consumer’s written order or request or on a bill, invoice, or other notice that describes or names the consumer item and is enclosed with the consumer item.
  • An unpackaged food item.
  • A consumer item that has a total weight of not more than 3 ounces, a total volume of not more than 3 cubic inches, and a total price of not more than 30 cents.
  • Live plants.
  • Live animals.
  • Motor vehicles.
  • Motor vehicle parts.
  • Packages of 20 or fewer cigarettes.
  • Greeting cards that are sold individually and have a readable coded price on the back of the card.
  • Merchandise that is ordered as a gift by a consumer and is sent by mail or other delivery service to a person other than the consumer by the retailer at the request of the consumer.

Auctions and Transient Merchants

If you are selling new merchandise at public auction, you must first secure a license as provided by law [2.1]. Similarly, if you are engaging in business as a transient merchant in Michigan, you must first obtain a license [3.1].

Conclusion

In Michigan, discounts or promotions can be offered without violating pricing laws as long as the advertisements meet the requirements outlined in the law [4.2]. Additionally, certain exceptions exist for the display of the total price of a consumer item offered for sale at retail [4.4]. If you are selling new merchandise at public auction or engaging in business as a transient merchant, you must first obtain a license as provided by law [2.1][3.1].

Source(s):
Jurisdiction

Michigan