Eliminating minimum markup requirements and the prohibition on sales below cost. (FE)
Impact
If passed, AB988 would significantly modify the landscape of retail sales in Wisconsin. The repeal of the Unfair Sales Act could lead to more aggressive pricing strategies from retailers, particularly those selling high-demand products. Proponents of the bill argue that this will increase competition, lower prices, and better serve consumer interests. Conversely, critics predict that same changes may harm small businesses unable to compete with larger retailers adopting predatory pricing tactics, ultimately affecting market stability and consumer choice.
Summary
Assembly Bill 988 aims to dismantle existing state laws regarding minimum markup requirements and the prohibition of sales below cost, which are encapsulated under the Unfair Sales Act. Currently, the Unfair Sales Act prohibits retailers from selling products below their cost if the intent is to undercut competitors or induce customer purchases of other items. Additionally, it mandates a specified minimum markup on certain products including alcoholic beverages and motor fuel. By repealing these laws, AB988 seeks to enhance retail pricing strategies and potentially lower costs for consumers by allowing more competitive pricing practices.
Contention
The bill has raised substantial debate among legislators and stakeholders. Supporters, primarily from the business sector, argue that the existing laws create an artificial price floor that hinders competitiveness and innovation in the market. They contend that allowing retailers to set their prices freely will benefit consumers through lower prices and more diverse shopping options. However, opponents express concern that repealing the minimum markup laws could lead to market distortions, where larger retailers might engage in loss leader pricing strategies to squeeze smaller competitors out of business. There are fears that such a shift could lead to long-term negative effects on the retail sector and local economies.
Legalizing the possession of marijuana; medical marijuana; regulating the production, processing, and sale of marijuana; expunging or redesignating past convictions for marijuana-related crimes; equity grants; making an appropriation; and providing a penalty. (FE)