Measure Would Restrict Rebate Amount from Being Included in an Item’s Advertised Price Unless that Price was Offered at the Register
(TRENTON) — Assemblymen John J. Burzichelli and Paul D. Moriarty Wednesday issued a multimedia package discussing legislation they sponsored that would change how retailers advertise manufacturers’ mail-in rebates.
Under the legislation (A-1692), retailers would only be able to advertise a product’s “net price” — the price after a manufacturer’s rebate is applied — if the one of the following two conditions were met:
- The retail establishment charges the rebate price to consumers at the time of sale, making it the retailer’s responsibility to complete the rebate redemption process; or
- The advertising language for the rebate is displayed in the same font and size as the after rebate price.
Burzichelli and Moriarty (both D-Gloucester) said their legislation would help prevent retailers from luring consumers into stores with the promise of one price, only to have to pay another, higher price at check-out.
The multimedia package consists of a video of the legislators discussing their legislation, audio of same, a transcript of comments and a press release discussing the bill in more detail.
The audio file is available upon request.
A transcript of comments from the sponsors follows:
Assemblyman John J. Burzichelli (D-Gloucester):
“This will change how advertisers approach consumers about the value of a rebate. People have horror stories about trying to file for rebates. They buy a product and they need to get the money back that they thought they were going to save at the register to begin with.”
Assemblyman Paul D. Moriarty (D-Gloucester):
“Consumers lose about $500 million in rebates each year that they never end up collecting. I might be one of them. I’ve been waiting six months for a $100 rebate on a phone that I was supposed to get a rebate for.”
“We understand that over half a billion dollars a year is left behind by consumers who are eligible for a rebate but never either get around to sending them in, or they don’t get processed correctly.”
“This doesn’t stop anyone from offering a mail in rebate. But what it does say is that if you’re advertising a price that you have to pay at the check-out counter, that price would have to be the price that you pay and not the price that you pay after the mail-in rebate.”
“The bottom line is: the price they advertise is the price you’re going to pay at the register. If they want to offer a mail-in rebate, they can’t lure you into the store, thinking you’re going to spend less. This creates a level playing field for a consumer in New Jersey.”
On the Net:
The Assembly Democratic Office Web site
NJ Assembly Dems on YouTube
NJ Assembly Dems on Vimeo
NJ Assembly Dems on Facebook
NJ Assembly Dems on Twitter
NJ Assembly Dems on Flickr
NJ Assembly Dems e-mail alerts