Exaggerating a sale: Is this illegal?

[Zuul]

I've tried wading through descriptions of the laws on advertising sales, but I'm still not entirely sure I understand if this is illegal or not.

A friend and I dropped into a convenience store not too long ago and she wanted to buy a pack of Camel Lights. There was a manufacturer's advertisement that Camel Lights and Camel Filters were $1 off, with this fact printed on the plastic wrapper around each individual pack. After paying, however, my friend noticed the sign showing the "regular" price of Camels and realized that, in fact, only fifteen cents had been taken off. She asked the clerk, who shrugged and said management had set the prices and that fifteen cents off was what they'd come up with.

Now, I've done purchasing in retail before and I know how this works from the store's perspective. Since it's a promotional price from the manufacturer, generally that means the store is being reimbursed by R.J. Reynold's for selling the cigarettes at a cheaper price*, either by purchasing them at a lower price than usual or being given credit from the vendor. So they're not just ripping off the customer, but the manufacturer as well.

I don't smoke, so it doesn't affect me at all, but it seems like this is a pretty scuzzy scam that should be illegal. Is it?

*This was confirmed when I looked at the packaging on the pack my friend bought, which actually said something along the lines of the manufacturer paying the difference. There wasn't anything about it being a rebate, either. Just, flat out, the packaging says it's supposed to be sold at a dollar off.

[Cluricaun]

When smokes are packaged as “Buy One Get One Free” the free pack is marked as such, as it’s exempt from taxation since it’s not to be sold. The cellophane on the pack clearly marks it as “For Promotional Use Only, Not For Resale”

Care to guess how many of those marked as such packs I’ve been sold at full price before? It’s ripping off the state, the distributor and the manufacturer. Not that too many people are shedding a tear on ol’ Phil Morris’ behalf, but it’s outright theft from the state and not to be taken lightly. If you call them on it you just get the full blown “Nod and smile I-don’t-speak-English-Buddy” act.

This mostly happens in nasty bodega type liquor and food “mart” type establishments that also cheerfully and openly sell counterfeit Cubs and Sox hats and drug paraphanelia as well, so no huge surprise there anyway.

[Wheresgeorge04]

Where I work (C-store), the official retail cigarette prices are significantly higher than the retail price the customer pays. For example, Camels, for inventory purposes, are $5.29 per pack. However, we actually charge something like $4.03 per pack, and the difference is reflected in our bookkeeping as a reduction in inventory the next morning. Additionally, we give a discount for a multi-pack sale. However, when we get Camel "Buy 2, get 1 free" packs, which are pre-packaged and sent to us by the company, they only take into account the official retail price of $5.29, and we cannot override this. So 3 packs bought in the 3-pack package are $10.58 + Tax ($5.29 X 2), but 3 packs bought separately are $11.19 + Tax ($4.03 X 3, minus 30 cents per pack for multi-pack purchase). This is technically legal and correct, but is barely a difference. It's confusing and misleading if you don't understand it.

Joe

[Zuul]

Where I work (C-store), the official retail cigarette prices are significantly higher than the retail price the customer pays. For example, Camels, for inventory purposes, are $5.29 per pack. However, we actually charge something like $4.03 per pack, and the difference is reflected in our bookkeeping as a reduction in inventory the next morning. Additionally, we give a discount for a multi-pack sale. However, when we get Camel "Buy 2, get 1 free" packs, which are pre-packaged and sent to us by the company, they only take into account the official retail price of $5.29, and we cannot override this. So 3 packs bought in the 3-pack package are $10.58 + Tax ($5.29 X 2), but 3 packs bought separately are $11.19 + Tax ($4.03 X 3, minus 30 cents per pack for multi-pack purchase). This is technically legal and correct, but is barely a difference. It's confusing and misleading if you don't understand it.

Joe

So the pack of cigarettes my friend bought was for $4.40 and the regular price they sold the Camels for was $4.55. It might be possible that the "dollar off" is technically accurate and the official retail price of Camels would be, say, $5.40?

[Oakminster]

I don't know it it's legal or not. However, it is likely that your State Attorney General has a Consumer Protection section. Might be worth a call to them to check it out and/or file a report. Another option might be the State Tax office, since they may not be getting the right amount....

[Wheresgeorge04]

So the pack of cigarettes my friend bought was for $4.40 and the regular price they sold the Camels for was $4.55. It might be possible that the "dollar off" is technically accurate and the official retail price of Camels would be, say, $5.40?

Yes, possibly. Depends on the state, probably, and likely other factors. I only know how we do it in my chain.

Joe