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

Requirements for Offering Discounts or Promotions in North Dakota

Yes, you can offer discounts or promotions in North Dakota without violating pricing laws as long as you comply with the following requirements:

  1. Marketing Requirements: Discount plan organizations may market directly or contract with other marketers for the distribution of the organization’s product. The discount plan organization must have an executed written agreement with a marketer before the marketer’s marketing, promoting, selling, or distributing the discount plan. The agreement between the discount plan organization and the marketer must prohibit the marketer from using advertising, marketing materials, brochures, and discount plan cards without the discount plan organization’s approval in writing. The discount plan organization must be bound by and responsible for the activities of a marketer which are within the scope of the marketer’s agency relationship with the organization, or are otherwise approved by or under the direction and control of the organization. Before use, a discount plan shall approve in writing any advertisements, marketing materials, brochures, and discount cards used by marketers to market, promote, sell, or distribute the discount plan. [1.1]
  2. Prohibited Conduct: Discount plan organizations may not make misleading, deceptive, or fraudulent representations regarding the discount or range of discounts offered by the discount plan. [1.4]
  3. Registration Requirements: Before doing business in or from North Dakota as a discount plan organization, a discount plan organization must be authorized to transact business in North Dakota through the secretary of state and must be registered by the commissioner to operate as a discount plan organization. An application for registration under this chapter must be filed with the commissioner on a form prescribed by the commissioner. The application must demonstrate, set forth, or be accompanied by the following: a. The five hundred dollar application fee; b. A list of the names, addresses, official positions, and biographical information of each individual responsible for conducting the applicant’s affairs, including each: (1) Member of the board of directors, board of trustees, executive committee, or other governing board or committee; and (2) Officer; c. A copy of the form of any contract made or arrangement to be made between the applicant and any individual listed in subdivision b; d. All marketing materials to be used in connection with marketing a discount plan in North Dakota; e. A description of member complaint procedures to be established and maintained by the applicant; f. A copy of the applicant’s cancellation and refund policy; g. The name and address of the applicant’s agent for service of process, notice, or demand, or if not domiciled in North Dakota, a duly executed instrument appointing the commissioner and the commissioner’s successors, the applicant’s attorney upon whom all process in any action or proceeding against the applicant may be served; and h. Any other information the commissioner may reasonably require. [1.3]
  4. Exception to Registration: A provider that provides discounts to the provider’s own patients, without any cost or fee of any kind to the patient, is not required to obtain and maintain registration under this chapter as a discount plan organization. [1.2]

Based on the above documents, it is clear that offering discounts or promotions is allowed in North Dakota as long as the marketing and advertising materials are approved by the discount plan organization and do not contain any misleading or fraudulent information. Additionally, discount plan organizations must be registered with the commissioner and comply with the registration requirements. However, providers that provide discounts to their own patients without any cost or fee of any kind to the patient are exempt from registration.

Source(s):
Jurisdiction

North Dakota