Section 14.203. Disclosing exceptions, limitations, or restrictions rainchecks and substitutions.

(1) If an advertisement does not state the quantity of a consumer item available, and the consumer item cannot be sold throughout the advertised period of sale, the advertisement shall disclose all the seller's exceptions, limitations, or restrictions with respect to stores, consumer items, or prices otherwise included in the advertisement, and the advertiser shall make available a raincheck which obligates the advertiser to deliver and sell to the consumer in possession   of  the  raincheck   the

consumer item specified in the raincheck, at the advertised price stated in the raincheck, and at the future date  stated  in  the  raincheck,   not   in excess of 90 days, or at an earlier time upon notification to the consumer by the advertiser. After notification to the consumer is given, the advertiser may dispose of the item upon failure of the consumer  to  pick  up the item in the time specified in section 5(2) of the act.

(2)    An advertiser, instead of providing the consumer with a raincheck, may substitute for the unavailable advertised consumer item a similar consumer item of equal or greater monetary value. This rule does  not modify a person's obligations under section 5(3) of the act.

(3)    If an advertiser elects to substitute a consumer item of equal or greater monetary value because the advertiser is unable to redeem a raincheck due to the unavailability of the advertised consumer item, the advertiser may substitute either a similar item bearing a substantially equivalent regular price at the advertised lower price, or a similar item bearing a higher regular price at a price equal to the regular price of the higher-priced item, less the percentage reduction offered for the unavailable consumer item.

Example: An advertisement indicates a consumer item regularly sells for $50.00,  but is on this week for does not disclose the quantity available. The advertiser runs out of the advertised item during the period of sale and knows that the item cannot be obtained again to redeem a raincheck. The advertiser may then offer to a consumer either of the following  substitutesimilar items:

(a)   Another similar $50.00 item at $30.00.

(b)   Another similar item regularly selling for

$75.00 at a comparable savings or reduction in price; that is, 40% off or $45.00.

(4)   An advertiser shall not limit the obligation to redeem a raincheck by including a date in a raincheck less than 90 days from the date of the raincheck. For example, a raincheck which provides for its redemption on or before a date less than 90 days thereafter is insufficient compliance with the act if the purpose of the earlier date is to evade compliance   in  the event the  guarantee  cannot   be  honored  in  the  shorter time. An advertiser may, however, redeem the raincheck earlier than 90 days upon notification to the consumer.

(5)   A raincheck shall contain, but not be limited to, the following:

(a)   Space for a description of the unavailable item.

(b)   Space for the price to be paid  for  the  unavailable   item  of   the consumer.

(c)   Space for the signature or initials  of a   person   authorizing  the raincheck.

(6)    The raincheck shall be executed in duplicate, 1 copy to be given to the consumer, the other to be retained by the merchant.

History: 1979 AC.