The legislation intends to curb the practice of zone pricing, which has been linked to unfair pricing mechanisms that harm consumers in specific areas. By legally defining the terms and banning wholesalers or dealers from engaging in zone pricing, the bill aims to promote fairness in retail gasoline pricing and ensure consumers are not subjected to excessive pricing based solely on their geographical location. This could potentially lower gasoline prices for consumers in areas affected by zone pricing practices.
Summary
Bill A08112 aims to amend the general business law regarding zone pricing for retail motor fuel. The bill provides definitions for 'additional costs' and 'zone pricing', explicitly stating that zone pricing refers to the establishment of price differences based on the geographical location of a retail outlet within a relevant geographic market. This clarification seeks to address the detrimental effects of zone pricing on competition and consumer equity across various regions in New York.
Contention
One point of contention around Bill A08112 revolves around the enforcement mechanisms for violations of the zone pricing restrictions. The bill allows wholesalers or dealers who are injured due to zone pricing to pursue action in their own name, though it notably restricts them from recovering damages. Critics may argue that this limitation on recoverable damages could deter potential enforcement of the act and ultimately leave affected parties without adequate protection or compensation for unfair practices.