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

To offer discounts or promotions without violating pricing laws in Rhode Island, you must comply with the state’s consumer protection laws. Specifically, you should be aware of RIGL 6-31-2, which requires sellers to disclose the unit price and total price of certain consumer commodities. Additionally, RIGL 6-29-2 states that any sale made in respect to which a commission, rebate, or discount is represented as being given in return for names of other prospective buyers shall be voidable at the option of the buyer, unless there is a written agreement between the parties to the sale containing the provisions set forth in § 6-29-1.

It is important to note that Rhode Island has a Fair Dealership Act, which prohibits grantors from engaging in certain unfair business practices with dealers. This act is designed to promote fair business relations between dealers and grantors and to protect dealers against unfair treatment by grantors. Violations of this act can result in civil penalties [7.1][7.2].

Furthermore, RIGL 6-27-1, also known as “The Rhode Island Truth in Lending and Retail Selling Act,” requires sellers to provide accurate and complete information about the terms of a sale, including any discounts or promotions offered. Additionally, RIGL 6-27-9 requires sellers to offer refunds for unused items returned within ten business days of purchase, unless the item is specifically exempted by law.

There are no specific requirements for offering discounts or promotions in Rhode Island beyond compliance with these consumer protection laws. However, it is recommended that you consult with a legal professional to ensure that your business practices are in compliance with all applicable laws and regulations.

It is also important to note that RIGL 3-4-8 prohibits the shipment of intoxicating beverages directly to any Rhode Island resident who does not hold a valid wholesaler license issued by the State of Rhode Island, with certain exceptions [2.1]. Additionally, RIGL 6-54-9 exempts certain types of businesses, including franchises and dealerships subject to the Rhode Island Franchise Investment Act, from the provisions of RIGL Chapter 6-54 [4.1].

In summary, to offer discounts or promotions in Rhode Island, you must comply with the state’s consumer protection laws, including RIGL 6-31-2, 6-29-2, 6-27-1, and 6-27-9. It is also important to be aware of other relevant laws and regulations, such as those governing the sale of intoxicating beverages and the operation of franchises and dealerships. If you have any further questions or concerns, it is recommended that you consult with a legal professional.

Source(s):
Jurisdiction

Rhode Island