Legal Issues to Know Before Offering a Sale or Coupon

Before you announce a sale or mail coupons to your customers, there are some rules you need to know. — Getty Images/SDI Productions

Discounts, sales and coupons are great ways to boost sales transactions, especially during low periods or when you are trying to get rid of overstock. According to one estimate, 96% of consumers have used a coupon in the past 90 days. These types of promos can help your business incentivize repeat visits, upsell a low-volume product and otherwise reward customers for their brand loyalty.

However, before you host a sale or offer a coupon discount, make sure you’re aware of the legal regulations in place to protect customers. Here are some legal issues to know before launching a sale or coupon at your venture.

Background: promotional pricing and fair advertising

Discounts, sales, coupons and other forms of promotional pricing are governed by the Federal Trade Commission (FTC)

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