Wisconsin Senate Bill SB888

Wisconsin 2023-2024 Regular Session

• Introduced: 1/5/24
• Refer: 1/5/24
• Failed: 4/15/24

Caption

Eliminating minimum markup requirements and the prohibition on sales below cost. (FE)

Impact

If enacted, SB888 would significantly reshape state regulations concerning retail pricing practices. The repeal of the minimum markup requirements means retailers could sell products at or below cost without legal repercussions. This change is expected to impact pricing strategies across various industries, particularly those involving high-volume sales. Supporters believe it will stimulate competition and potentially lower consumer prices, while opponents express concern that it may lead to predatory pricing practices that could threaten small businesses and undermine fair competition.

Summary

Senate Bill 888 aims to repeal the Unfair Sales Act in Wisconsin, which prohibits below-cost sales of merchandise intended to unfairly divert trade. The act also enforces minimum markup requirements for specific products including motor vehicle fuel, tobacco, liquor, and various alcoholic beverages. By eliminating these restrictions, SB888 seeks to streamline retail practices and enhance competition within the market. Proponents argue that this will allow retailers to offer more competitive pricing to consumers, ultimately benefiting the economy and increasing consumer choice.

Contention

The discussion surrounding SB888 highlights a division between the interests of larger retail chains, which favor lower pricing regimes, and small businesses that may struggle to compete under conditions of unregulated pricing. Critics of the bill argue that removing minimum markups could result in a 'race to the bottom,' where companies lower prices unsustainably, risking their own viability and the economic health of local communities. Proponents counter that it promotes a free market environment, encouraging retailers to innovate and adapt without government interference.