Code of Massachusetts Regulations › 940 CMR - OFFICE OF THE ATTORNEY GENERAL › Title 940 CMR 6.00 - Retail Advertising › Section 6.14 - Record Keeping Requirements

Current through Register 1525, July 5, 2024
(1)
Basic
			 Principle
. In accordance with
			 940 CMR
			 6.03(1), the purpose of 940
			 CMR 6.14 is to require that a seller be able to substantiate the material
			 representations it makes in an advertisement. Subject to the requirements in
			 940 CMR 6.14(2), the burden is on the seller to decide which records to
			 maintain to adequately support its claims; however, 940 CMR 6.14 describes the
			 documents which a seller could provide to substantiate its advertised
			 claims.
(2)
General
			 Requirements
. It is an unfair or deceptive act for a seller to fail to
			 maintain records for a period of six months after the last dissemination of the
			 advertisement and to provide those records to the Attorney General, upon
			 request, to substantiate the propriety of such advertisement under the
			 provisions of 940 CMR 6.00.
(3)
Guidelines for Maintaining Records Necessary to Substantiate
			 Advertisements.
(a)
Comparison to
			 a Seller's Own Former Price
. A seller may substantiate a price
			 comparison between the seller's current price and former price, subject to
			 regulation by
			 940 CMR
			 6.05(3),
			 6.05(5),
			 6.05(9)(a)1,
			 6.05(11),
			 6.05(13)
			  or
			 6.05(14)(a)(1)
			 and (2), by maintaining records of all sales
			 and all offers to sell the advertised product which occurred during the period
			 commencing twelve months immediately preceding the submission date of the
			 advertisement and ending on the termination date of the advertised
			 sale.
(b)
Comparison to Other
			 Seller's Price for an Identical Product.
When a price comparison is made
			 between the seller's current price and the price of any other seller in the
			 trade area, pursuant to
			 940 CMR
			 6.05(7),
			 6.05(8)
			  or
			 6.05(14)(a)1,
			 the seller may substantiate such comparison by maintaining records which
			 identify the specific seller(s) in the trade area who are offering the product
			 at the comparative price as of the Measurement Date of the
			 advertisement.
(c)
Comparison
			 to Other Seller's Price for a Comparable Product.
When a price
			 comparison is made between the seller's current price and the price(s) of any
			 other seller(s) for a comparable product, pursuant to
			 940 CMR
			 6.05(9), the seller may
			 substantiate such comparison by maintaining records which identify the specific
			 seller(s) offering the advertised product at the comparative price as of the
			 Measurement Date of the advertisement and a complete description of the
			 comparable product including the brand, make, model, and model year.
(d)
Comparison to a Seller's Future
			 Price.
When a price comparison is made between the seller's current and
			 future price, pursuant to
			 940 CMR
			 6.05(4), the seller may
			 substantiate such comparison by maintaining records of all sales or offers to
			 sell the advertised product which occurred during the period beginning twelve
			 months before the Measurement Date of the advertisement and ending after a
			 period which is twice the duration of the introductory price offer period. In
			 addition, records documenting introductory offers made to first-time purchasers
			 pursuant to
			 940 CMR
			 6.05(5)(c)  should be
			 maintained for the 12-month period immediately following the dissemination date
			 of the introductory offer.
(e)
"Two for the Price of One".
When a price comparison regulated by
			 940 CMR
			 6.05(13)  is made, the
			 seller should maintain records which substantiate the material representations
			 made in the advertisement.
(f)
Availability
. In order for
			 940 CMR
			 6.06(1)(a), (b) or (c) to
			 apply to the seller, the seller should maintain sufficient records to show that
			 each condition in
			 940 CMR
			 6.06 has been met.
(g)
Prizes or Gifts
. Any seller
			 who disseminates an advertisement that offers a gift or prize and is regulated
			 by
			 940 CMR
			 6.05(16)  or
			 6.08, should maintain
			 records which substantiate the seller's material representations, including
			 documentation of:
1. compliance with the
			 requirements for price comparisons contained in 940 CMR 6.14(2) and 6.14(3)(a),
			 (b), (c); and
2. compliance with
			 the requirements of
			 940 CMR
			 6.05(16)(a), (d), (e), and
			 6.08(1), (3), (4), and
			 (5).