Relating to the sale by certain alcoholic beverage permit or license holders of alcoholic beverages at a cost below the cost to the seller.
Impact
The implementation of HB 2165 is expected to significantly alter the landscape of alcohol sales in Texas. By preventing retailers from selling at a loss, the bill aims to foster a fair competitive environment, potentially benefiting established retailers against those that may engage in predatory pricing practices. The Texas Alcoholic Beverage Commission is tasked with adopting specific rules to enforce this regulation, which will become part of the official records of participating sellers.
Summary
House Bill 2165 aims to regulate the retail sale of alcoholic beverages by prohibiting certain sellers from offering alcohol at prices lower than their wholesale cost. Specifically, the bill mandates that any permit or license holder for retail sales of alcoholic beverages for off-premise consumption must not sell such products for less than what it cost them to acquire them, factoring in applicable freight, taxes, and duties. This law reflects an effort to stabilize pricing within the alcoholic beverage market and ensure fair competition among retailers.
Sentiment
The sentiment surrounding HB 2165 appears to be mixed, with support from those who view it as a necessary step to protect the integrity of the marketplace. Proponents argue that by ensuring that retailers do not undercut each other with unsustainable pricing, the bill can help maintain a stable market for alcoholic beverages. Conversely, some critics may view this legislation as restrictive and an infringement on market freedom, potentially stifling competition and innovation in pricing strategies.
Contention
Notable points of contention include the potential impact on consumer choices and pricing in the retail market. While defenders of the bill advocate for its aim to promote fair practices among retailers, dissenters might argue that it could lead to higher prices for consumers and reduce price competition in the market. Additionally, the exclusion of discontinued products from these regulations raises questions regarding its implementation and the interpretation of what constitutes 'discontinued' in the context of market availability.