SF 1233

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; providing an exception for pharmaceutical products to a
law prohibiting sales below cost where competition exists; amending Minnesota
Statutes 2006, section 325D.04.

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

Section 1.

Minnesota Statutes 2006, section 325D.04, is amended to read:

325D.04 SELLING BELOW COST FORBIDDEN.

new text begin (a) new text end Any retailer, wholesaler, subjobber new text begin , new text end or vending machines operator engaged in
business within this state, who sells, offers for sale or advertises for sale, any commodity,
article, goods, wares, or merchandise at less than the cost thereof to such vendor, or gives,
offers to give new text begin , new text end or advertises the intent to give away any commodity, article, goods, wares,
or merchandise for the purpose or with the effect of injuring a competitor or destroying
competition, shall be guilty of unfair discrimination; and, upon conviction, subject to the
penalty therefor provided in section 325D.071. new text begin This paragraph does not apply to two or
more competitors that price a pharmaceutical product within ten percent of the lowest of
the prices charged by these competitors, even if one or more of the prices is below cost.
new text end

new text begin (b) new text end Any retailer, wholesaler, subjobber new text begin , new text end or vending machines operator who sells
goods in any part of this state at prices lower than those exacted by the person elsewhere
in the state for like qualities and grades and where the effect of such lower prices may be
substantially to lessen competition or tend to create a monopoly in any line of business, or
to injure, destroy, or prevent competition with the person selling at such lower prices, shall
be guilty of unfair competition and subject to the penalties of section 325D.071; provided,
that nothing shall prevent differentials in prices in different localities which make only due
allowances for differences in "cost of doing business" or "overhead expense" and in costs
of delivery for such goods to different localities; nor differences in prices in an endeavor
made in good faith to meet the legal prices of a competitor selling the same commodity,
articles, goods, wares new text begin , new text end or merchandise in the same locality or trade area.

new text begin (c) new text end The inhibition against sales below cost or 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end