Trade association publication of advertisements for use by members featuring range of prices to be charged…

No. 150. Trade association publication of advertisements for use by members featuring range of prices to be charged consumers The Commission advised a trade association in the home improvement field that it would probably not be illegal for the association to furnish its members ,vith advertising featuring a range of prices to be charged consumers.

The advertisements in question were to be included in a bookJet to be sent to aJJ members and would be suitable for mailing to the members' customers. The advertisements would depict typical home improvement projects, list the specifications for the project and state a range of prices in terms of dollar amounts per month for qualified bya specified number of years. The prices would be stating that they will vary according to labor and material costs in various areas. One page of the booklet would include a schedule of financing charges for one. two, three years, etc. The advertisements would be marked "Proof" and members purchasing the booklets to send to their customers would have the option of changing any of the suggested proj ect prices if they desire. The opinion stated that, in general, there could he no objection to the proposal if implemented exactly as outlined above. In this connection , however, the Commission added that all involved should be aware of the dangers of suppressing or eliminating or ADVISORY OPINION DIGESTS 1053 restraining price competition among individual builders or contractors because of the fact that prices are to be included in the advertisements. Thus, this plan would be rendered unlawful if in practice the suggested prices were used as a subterfuge or pretext for horizontal price agreements, or otherwise restraining competition, between contractors or builders in particular market areas. Special care must therefore be taken to insure that the legality of the plan is not impaired by the manner in which it is implemented. This advisory opinion is expressly predicated on the assumption that the proposal wil be implemented in strict conformity with the representations made to the Commission. (File No. 683 7028, released Nov. 21 , 1967.