HF 1321

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to trade regulations; regulating certain 
  1.3             trade practices between cigarette manufacturers and 
  1.4             retailers; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 325D. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [325D.422] [CIGARETTE TRADE PRACTICES; 
  1.8   MANUFACTURERS AND RETAILERS.] 
  1.9      Subdivision 1.  [PERMITTED RETAILER PRACTICES.] A cigarette 
  1.10  retailer may enter into and participate in a cigarette 
  1.11  manufacturer's merchandising, advertising, display, or consumer 
  1.12  discount or promotional agreement or program in which the 
  1.13  retailer: 
  1.14     (1) provides cigarette merchandising, shelf space, 
  1.15  advertising, stocking, or display to the manufacturer; 
  1.16     (2) conducts the manufacturer's consumer promotion and 
  1.17  discount programs and provides such promotions and discounts to 
  1.18  consumers; and 
  1.19     (3) is paid or compensated by the manufacturer for 
  1.20  performing such activities. 
  1.21     Subd. 2.  [PERMITTED MANUFACTURER PRACTICES.] A cigarette 
  1.22  manufacturer may: 
  1.23     (1) offer and enter into retailer agreements and programs 
  1.24  listed in subdivision 1; 
  1.25     (2) pay, or provide other compensation to, retailers for 
  2.1   participating in agreements and programs listed in subdivision 
  2.2   1; and 
  2.3      (3) provide consumer promotions and discounts to retailers 
  2.4   for the retailers to furnish to consumers. 
  2.5      Subd. 3.  [PROHIBITED MANUFACTURER PRACTICES.] It is 
  2.6   unlawful for a cigarette manufacturer to directly or indirectly: 
  2.7      (1) condition a retailer's receipt of consumer promotions 
  2.8   or consumer price discounts on the retailer's conduct or actions 
  2.9   relating to the manufacturer's products or the products of any 
  2.10  other manufacturer, except for requirements that the retailer 
  2.11  (i) provide the promotion or discount to consumers and (ii) 
  2.12  advertise and display the promotion and the promoted or 
  2.13  discounted product to consumers; 
  2.14     (2) require or cause the retailer to allocate a specified 
  2.15  percentage or fraction of the retailer's merchandising, 
  2.16  stocking, display, shelf, or advertising space to the 
  2.17  manufacturer; 
  2.18     (3) prevent, restrict, or limit a retailer from stocking, 
  2.19  advertising, displaying, or participating in a program for 
  2.20  another manufacturer's product; 
  2.21     (4) prevent, restrict, or limit the retailer from 
  2.22  determining the size or location of the space that the retailer 
  2.23  uses to stock, display, promote, or advertise cigarettes; or 
  2.24     (5) require the retailer to raise its prices on, or prevent 
  2.25  the retailer from setting, retaining, or reducing its prices on, 
  2.26  another manufacturer's products.