HF 399

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/17/2023 11:40am

A bill for an act
relating to consumer protection; prohibiting price discrimination in commercial
transactions; proposing coding for new law in Minnesota Statutes, chapter 325F;
repealing Minnesota Statutes 2022, section 325D.03.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325F.035] COMMERCIAL TRANSACTIONS; PRICE
DISCRIMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Price discrimination prohibited. new text end

new text begin (a) A person engaged in commerce,
in the course of the commerce, is prohibited from directly or indirectly discriminating in
price between different purchasers of commodities of like grade and quality where:
new text end

new text begin (1) either or any of the purchases involved in the discrimination are in commerce;
new text end

new text begin (2) the commodities are sold for use, consumption, or resale within Minnesota; and
new text end

new text begin (3) the effect of the discrimination lessens competition or tends to:
new text end

new text begin (i) create a monopoly or monopsony in any line of commerce; or
new text end

new text begin (ii) injure, destroy, or prevent competition with:
new text end

new text begin (A) any person who grants or knowingly receives the benefit of the discrimination; or
new text end

new text begin (B) customers of a person who grants or knowingly receives the benefit of the
discrimination.
new text end

new text begin (b) Nothing in this subdivision prevents:
new text end

new text begin (1) differentials that only make due allowance for differences in the cost to manufacture,
sell, or deliver that result from the differing methods or quantities in which commodities
are sold or delivered to purchasers;
new text end

new text begin (2) a person engaged in selling goods, wares, or merchandise in commerce from selecting
customers in bona fide transactions and not in restraint of trade; or
new text end

new text begin (3) price changes from time to time in response to changing conditions affecting the
market for or the marketability of the goods concerned, including but not limited to:
new text end

new text begin (i) actual or imminent deterioration of perishable goods;
new text end

new text begin (ii) obsolescence of seasonal goods;
new text end

new text begin (iii) distress sales under court process; or
new text end

new text begin (iv) sales in good faith to discontinue business in the goods concerned.
new text end

new text begin Subd. 2. new text end

new text begin Rebuttal of prima facie case. new text end

new text begin (a) Upon proof being made at any hearing on a
complaint made under subdivision 1 that there has been price discrimination, the burden of
rebutting the prima facie case made by showing justification is upon the person charged
with a violation of this section. Unless justification is affirmatively demonstrated, an order
terminating the discrimination may be issued.
new text end

new text begin (b) Nothing in this subdivision prevents a seller rebutting the prima facie case made by
showing that the seller's lower price to any purchaser or purchasers was made in good faith
to meet an equally low price of a competitor.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 325D.03, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-00928

325D.03 DISCRIMINATION UNLAWFUL.

Any person, partnership, firm, or corporation, foreign or domestic, doing business in the state and engaged in the production, manufacture, or distribution of any printed or mimeograph matter, commodity, article, goods, wares, or merchandise in general use or consumption, who for the purpose or with the effect of injuring a competitor or destroying competition, shall discriminate between different sections, communities, or cities of this state by selling or furnishing such commodity, article, goods, wares or merchandise at a lower price, or rate in one section, community, or city, or any portion thereof, than such person, firm, or corporation, foreign or domestic, charges for such commodity, article, goods, wares, or merchandise in another section, community, or city, or any portion thereof, after making allowance for difference, if any, in the grade, quality, or quantity after equalizing the distance from the point of production, manufacture, or distribution and freight rates therefrom, shall be guilty of unfair discrimination; provided, that sections 325D.01 to 325D.07 shall not prevent any person, firm, or corporation from, in good faith, meeting local competition within any one section, community, or city. The inhibition hereof against locality discrimination shall embrace any scheme of special rebates, collateral contracts, or any device of any nature whereby such discrimination is, in substance or fact, effected in violation of the spirit and intent of sections 325D.01 to 325D.07.