Attorney General Jennifer M. Granholm, the Better Business Bureaus (BBB) of Eastern and Western Michigan, and the Michigan Chapter of the National Home Furnishing Industry today announced a new Advertising Challenge program to reform sale advertising in the Michigan home furnishing industry.

The Home Furnishing and Comparative Advertising Guidelines for Michigan Retailers are being published by the Department of Attorney General to ensure that home furniture advertisements provide accurate information and meaningful guidance to consumers and to end misleading or deceptive advertising and inflated price comparisons.

Granholm said: "Whether buying stocks or sofas, consumers expect the businesses they deal with to be responsible and accountable. Consumers need to be able to trust that when they’re buying something at a sale, they’re getting a sale price. This agreement will renew the real meaning of the words ‘sale price’ in the home furnishing industry."

Among other key provisions, the new guidelines specify that a "regular" price must be established and be available to consumers before a retailer can advertise a discounted sale price. The guidelines provide a specific outline for establishing a "regular price." The program will be monitored by the Better Business Bureaus and enforced by the Michigan Department of Attorney General.

Consumers who question the legitimacy of an ad’s listed sale price will be able to challenge the ad before either the Eastern or Western BBB. The Bureaus will work with the retailers to ensure that a true sale price is being offered. If the Bureaus are unable to resolve a consumer’s complaint, the complaint will be forwarded to the Attorney General’s office for legal action under the Michigan Consumer Protection Act and the Michigan Pricing and Advertising of Consumer Items Act. Both the Bureaus and the Attorney General will be able to "shop," or survey retailers, without notice and without identifying themselves in order to monitor in-store pricing activity.

The guidelines follow Granholm’s issuance of a September 2000 "White Paper" titled "Truth or Consequences? Comparative Advertising and Consumer Law." The guidelines were crafted over the last two years by Granholm, the Better Business Bureaus, and the CEOs of Michigan’s top furniture companies.

Granholm added: "The guidelines allow all industry actors to develop advertising campaigns from the same playbook so that no single company benefits from an unfair competitive advantage. This is the best in self-regulation backed up by the power of the law. I want to thank the Bureaus and the furniture retailers for their cooperation and their commitment to Michigan consumers."

Carmel Weems, Manager of Advertising Review for the BBB of Eastern Michigan, said: "A core value of the Better Business Bureau system is to assure truthful and accurate advertising. Self-regulation eases the burden of government while fostering quality advertising of real values available in the marketplace."

Ken Vander Meeden, President of the BBB of Western Michigan, said: "Furniture advertising has become a major problem for those of us involved with truth-in-advertising issues. The new furniture advertising guidelines should allow both Michigan consumers and reputable furniture retailers to easily recognize a legitimate ‘sale.’ The BBB of Western Michigan is pleased to have been a partner in developing and monitoring these much-needed guidelines. Integrity matters more than ever in today’s ever-changing business climate."

Jennifer Kamrath, President of the Michigan Chapter of the National Home Furnishing Association, said: "The members of the Michigan Chapter of the National Home Furnishing Association endorse and will comply with the Comparative Advertising Guidelines for Michigan Retailers. We look forward to working together with all Michigan retailers on this common goal."

Art Van Elslander, Chairman of Art Van Furniture, said: "As a former member of the BBB, and one who has served on its arbitration board, I know that the Better Business Bureau is an avid champion of consumer causes. Art Van Furniture has always cooperated with the Attorney General’s concerns, and we will support any initiatives that will further benefit consumers."

A copy of the new guidelines are available on-line at the Attorney General’s website at www.ag.state.mi.us. All furniture retailers in the state will receive a copy of the guidelines as well as additional information on implementing the program.