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17/09: Michigan Scanner Law - Upcharge on Cell Phone Sale
Question re: Michigan Scanner Law"What if you work for a retail cellular company and they upcharge $40.00 dollars on top of the phone price. Just because you are an upgrade and not a new line. But they do not have this listed on the tag. Is this also breaking the Michigan Retail Law?"
Response:
Charging an upcharge on top of the phone price without conspicuously indicating that there will be an additional cost is arguably false advertising. The retailer should be concerned about potential lawsuits and the law puts the retailer on the defense by creating a presumption of the retailer's intent to violate the law.
Michigan law section 445.353 provides that the total price of a consumer item displayed or offered for sale at retail shall be clearly and conspicuously indicated, so as to be readable and understandable by visual inspection, and shall be stamped upon or affixed to the consumer item. If the item is in a package or container, the total price shall be stamped upon or affixed to the outside surface of the package or container and need not be placed directly upon the consumer item.
A retailer may choose to not individually price mark 25 items which shall be listed and posted in a conspicuous place in the retail store. He may also choose to not individually price mark 25 additional items featured at a reduced price. If the retailer chooses to do this, the price and the name or description of the items not marked shall be indicated by a clear, readable, and conspicuous sign in immediate conjunction with the area in which the unmarked item or class of items is displayed. If the item is charged as a result of electronic identification or calculation by an automatic checkout system and the charge exceeds the price required to be indicated, it is prima facie evidence of a violation. Section 445.354.
If a retailer knowingly places before the public an advertisement which contains a statement or representation which is untrue, deceptive, or misleading, he has broken the law. The failure to advertise the upcharge is arguably deceptive and misleading. If a customer accepts an offer to purchase the goods and the retailer fails to sell the goods in the manner advertised - for the price offered - this is a rebuttable presumption of an intent to violate the law.
The consumer can also turn to the Michigan Consumer Protection Act, MCL 445.903 for protection. The MCPA protects consumers from unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce. Advertising or representing goods with intent not to dispose of those goods as advertised, at a specific price, is such a practice.