Which of these practices is most in accordance with the Federal Trade Commission's advertising guidelines?
A) An advertised price reduction claim is made on the basis of the customary markup used by most firms in an industry.
B) An advertised price reduction claim is made on the basis of a 25 percent reduction from an item's normal selling price.
C) A firm continuously advertises a product as being on sale.
D) A firm notes in its ads that its prices on all advertised items are at least $5 lower than any comparable competitor.

Question

Quizplus · Accepted Answer

The FTC requires that price reduction claims be based on the actual selling price of the item, not on arbitrary or inflated prices. Option B aligns with this guideline by basing the reduction on the item's normal selling price.

Which of These Practices Is Most in Accordance with the Federal