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Editor’s note: The Carpet and Rug Institute column will take two weeks off for the holidays, returning Jan. 7, 2011.
While the Carpet and Rug Institute’s main message is about carpet and its benefits, there are many additional responsibilities that fall within the scope of CRI’s role in service to the carpet industry and our community.
CRI’s job is to go well beneath the surface and prove how our environments for living, working, learning and healing are better, thanks to carpet and rugs. Through science-based research, customer advocacy, environmental stewardship and consensus building we serve our members and their customers. We are here for you.
Here is an example of CRI becoming involved with an issue in the greater community. Recently, businesses across the state of Georgia have had a law brought to their attention — specifically, Georgia law 10-1-424, which has to do with the use of the word “wholesale” in advertising.
I would be willing to bet that we all see this word at least once a day while driving through town on a store window, a billboard or during a local commercial on the evening news. Still, you have probably seen in news reports that some Georgia businesses have been accused of breaking this law, including some local carpet retailers. At the request of the Governor’s Office of Consumer Protection (GOCP), CRI has taken on the responsibility of delivering the message from the GOCP to the affected businesses in Dalton and the surrounding areas.
According to a letter I received from the Governor’s Office of Consumer Protection, the GOCP is tasked with enforcing Georgia’s Fair Business Practices Act. One purpose of these laws is to protect consumers from unfair or deceptive acts, including the use of the word “wholesale” in advertising aimed at the consuming public. Specifically, the relevant Code section OCGA (Official Code of Georgia Annotated) 10-1-424 provides that it is unlawful:
(1) For any person, firm, association or corporation to misrepresent the true nature of its business by use of the words “manufacturer,” “wholesaler,” “retailer” or words of similar import; or
(2) For any person, firm, association or corporation to represent itself as selling at wholesale or use the word “wholesale” in any form of sale or advertising, unless such person, firm, association or corporation is actually selling at wholesale those items advertised for the purpose of resale. For the purpose of this Code section the term “wholesale” means sale made for the purpose of resale and not one made to the consuming purchaser.
The next part of the letter continues to explain the above code:
“The Governor’s Office of Consumer Protection has received numerous complaints against a wide variety of businesses that are violating this statute, including complaints against carpet and flooring businesses. These violations appear in many forms and forums, including print and electronic media, the Internet, direct mail fliers, billboards and showroom displays.
“This agency will continue to pursue these cases to protect consumers from deceptive practices and support businesses that are in compliance with the law. The only exception is a moratorium (freeze) on new investigations until Jan. 31, 2011, to facilitate your efforts to inform members of the carpet and flooring industry about this consumer protection law.”
What does all of this mean? Without going into major detail, retailers will need to make the changes needed in order to come into compliance with this law, and we have until Jan. 31, 2011, to do that before more investigations begin.
In an effort to provide the best help where it is most needed, if you are a retailer and would like more information or a complete copy of the letter from the Governor’s Office of Consumer Protection, please contact CRI at (706) 278-3176. As an advocate, consensus builder and frequent mediator, CRI recognizes this opportunity to bring people together on an important set of issues.
As more information becomes available or advances are made on the issue, CRI will keep you informed.
Werner Braun is president of the Dalton-based Carpet and Rug Institute.
