HB 1024 — Unfair Sales Act; definition; low profit margins; effective date.

HOUSEENGROSSED OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO.

Bashore, Lepak, Hays, Osburn, Burns, Menz, and OsburnMunson of the House and Daniels of the Senate 96 COMMITTEE8 SUBSTITUTE An Act relating to the Unfair Sales Act;

defining terms;

Except as provided for in subparagraph b of this paragraph, the term "cost to the retailer" means the invoice cost of the merchandise to the retailer or the replacement cost of the merchandise to the retailer, HB1024whichever HFLRis Pagethe 1lower; BOLD FACE denotes Committee Amendments.

whichever is the lower;

to which shall be added (1) freight charges not otherwise included in theENGR. invoice cost or the replacement cost of the merchandise as herein set forth, and (2) cartage to the retail outlet if done or paid for the retailer, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the retailer as herein defined after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such, and (4) a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the cost of the retailer as herein set forth after adding thereto freight charges and cartage but before adding thereto a markup,;

H.

B.

NO.

1024 Page 1 the invoice cost or the replacement cost of the merchandise as herein set forth, and (2) cartage to the retail outlet if done or paid for the retailer, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the retailer as herein defined after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such, and (4) a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the cost of the retailer as herein set forth after adding thereto freight charges and cartage but before adding thereto a markup.

less all trade discounts except customary HB1024discounts HFLRfor Pagecash; 2 BOLD FACE denotes Committee Amendments.

discountsto forwhich cash;shall be added (1) freight charges not otherwise included in the invoice cost or the replacement cost of the merchandise as ENGR.

toH. which shall be added (1) freight charges not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set forth, and (2) cartage to the retail outlet if done or paid for the retailer, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the retailer as herein defined after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such, and (4) a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the cost of the retailer as herein set forth after adding thereto freight charges and cartage but before adding thereto a markup;

B.

NO.

1024 Page 2 herein set forth, and (2) cartage to the retail outlet if done or paid for the retailer, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the retailer as herein defined after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such, and (4) a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the cost of the retailer as herein set forth after adding thereto freight charges and cartage but before adding thereto a markup;

to which shall be added, (1) freight charges, not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set forth, and (2) cartage to the retail outlet if done or paid for by the HB1024wholesaler, HFLRwhich Pagecartage 3cost, BOLDin FACEthe denotesabsence Committeeof Amendments.proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the wholesaler as herein set forth after adding ENGR.

wholesaler,H. which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the wholesaler as herein set forth after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such;

B.

NO.

1024 Page 3 thereto freight charges but before adding thereto cartage, and taxes, and (3) all state and federal taxes not heretofore added to the cost as such;

When one or more items advertised, offered for sale, or sold with one or more other items at a combined price, or advertised, offered as a gift, or given with the sale of one or more other items, each and all of the items shall be deemed to be advertised, offered for sale, or sold, and the price of each item named shall be governed by the provisions of paragraphs (a) paragraph 1 or (b) 2 of this section, respectively;

The terms "sell at retail", "sales at retail", and "retail sale" mean and include any transfer for valuable consideration made in the ordinary course of trade or in the usual prosecution of the seller's business of title to tangible personal property to the purchaser for consumption or use other than resale HB1024or HFLRfurther Pageprocessing 4or BOLDmanufacturing. FACE denotes Committee Amendments.

or further processing or manufacturing.

(f)ENGR. 6.

H.

B.

NO.

1024 Page 4 (f) 6.

and HB10249. HFLR Page 5 BOLD FACE denotes Committee Amendments.

9.The term "unreasonably low profit margin" means a seller of goods has established a price for an item of tangible personal property which is offered for sale at the cost to the seller as ENGR.

TheH. term "unreasonably low profit margin" means that a seller of goods has established a price for an item of tangible personal property which is offered for sale at the cost to the seller as otherwise defined by this act, but with an increment in price above such cost that is intended to have the effect of eliminating market competition for the sale of such item of tangible personal property by any other seller within a reasonable geographic area where the item is offered for sale by such seller or which has the actual effect of eliminating market competition for the sale of such item of tangible personal property by any other seller within a reasonable geographic area where the item is offered for sale.

B.

NO.

1024 Page 5 otherwise defined by this act, but with an increment in price above such cost that is intended to have the effect of eliminating market competition for the sale of such item of tangible personal property by any other seller within a reasonable geographic area where the item is offered for sale by such seller or which has the actual effect of eliminating market competition for the sale of such item of tangible personal property by any other seller within a reasonable geographic area where the item is offered for sale.

It is hereby declared that any advertising, offer to sell, or sale of any merchandise, either by retailers or wholesalers, at less than cost or at an unreasonably low profit margin as defined in the Unfair Sales Act with the intent and purpose of inducing the purchase of other merchandise or of unfairly diverting trade from a competitor or otherwise injuring a competitor, impair and prevent fair competition, injure public welfare, are unfair competition and contrary to public policy and the policy of the Unfair Sales Act, where the result of such advertising, offer or sale is to tend to deceive any purchaser or prospective purchaser, or to substantially lessen competition, or to HB1024unreasonably HFLRrestrain Pagetrade, 6or BOLDto FACEtend denotesto Committeecreate Amendments.a monopoly in any line of commerce.

unreasonably restrain trade, or to tend to create a monopoly in any line of commerce.

5ENGR. COMMITTEE REPORT BY:

COMMITTEEH. ON COMMERCE AND ECONOMIC DEVELOPMENT OVERSIGHT, dated 03/04/2025 - DO PASS, As Amended.

7B. 9 HB1024 HFLR Page 7 BOLD FACE denotes Committee Amendments.