Bill No.: SF0112                  Drafter:  LGC

LSO No.:  09LSO-0534              Effective Date:  7/1/2009

Enrolled Act No.:  SEA0088

Chapter No.:       172

Prime Sponsor:     Senator Scott

Catch Title:       Archaic price regulation repeal.

Subject:    Regulation of unfair pricing.

Summary/Major Elements:

· The act amends and updates language in statutes regulating unfair price discrimination and repeals archaic provisions.  The statutes generally prohibit actions by a company with respect to pricing that would prevent or destroy competition or result in unjust or unreasonable profits.  Provisions which are repealed by this act include restrictions on the pricing of petroleum products which are otherwise regulated in statute.

· The act declares any contract or provision of a contract which violates the unfair price discrimination statutes to be null and void to the extent of the violation.

· The act clarifies that unfair price discrimination does not include certain standard business practices such as volume discounts and customer loyalty programs.

· The act provides that prohibitions currently in statute with respect to selling below cost do not apply to goods sold for promotional purposes at sales of limited duration and sales to reduce inventory.

Note:

· Final action on this bill was not taken at the time this summary was prepared.  Should changes be made to the bill upon final passage, an updated summary will be transmitted to all legislators.