The pressures of business can sometimes make us forget or ignore some of the rules. Some are unique to our professions while others apply to all businesses. Here are few and the way I understand each to apply.
“NEW” What is a new product. It is generally accepted that a new product is something that has been on the market for less than a year. Advertising something as new that is older than that could land you in hot water with the FTC or your state’s Consumer Affairs office.
“SALE” A sale is something special and temporary. Advertising the same sale terms for months on end is a no-no. The FTC and state Consumer Affairs offices frown on it.
“$X OFF MSRP” How often have you seen this in ads? When you advertise this you are saying that you either normally or have sold at least a few of these products at MSRP and you are giving a special discount from that price. If you have not previously sold the product at MSRP you could be accused of false and misleading advertising for suggesting that you are giving a discount from the MSRP which is what you normally sell the product for. You might be subject to penalties imposed by your licensing department, your state, and the federal government.
“RIGHT TO CANCEL” Many professionals sell instruments at locations other than their office. When this occurs you must provide the consumer with an FTC mandated 3 day (business days) Right of Cancellation Form. The language, type size and # of copies are specified by the FTC. Violation of this rule can lead to the consumer keeping the product AND you having to refund his payment.
“MORE – RIGHT TO CANCEL” The term, “selling a product outside of your normal business location” has, in some cases, been interpreted to mean not only in a consumer’s home but any temporary sales location, such as a motel or location that you use on an intermittent basis.
“ALLOWABLE PRACTICE” As we all know, each state has its own unique regulations. The definition of who can do what can be very loose or tight. Do you know exactly what your state allows unlicensed people in your office (receptionist, etc) to do? I know of one state that prohibits any unlicensed person from even cleaning an earmold. This prohibition is almost universally ignored or poorly understood in that state but nevertheless, you should know what you and the others in the office are legally allowed to do.
“SCOPE OF PRACTICE” This is the group of activities a person in a profession, any profession, is allowed to do. The one big caveat, other than your state or federal regulations is the fact that although a practice may be allowed under your scope of practice, you MUST have had formal training in that practice before doing it. Removing earwax for example, is allowed in many states but the practitioner must have attended a training course in the procedure before attempting to do it. Just “winging it” is not likely to get you very far with your state board or your liability insurance carrier.
