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ENGROSSED HOUSE
BILL NO. 1024 By: Bashore, Lepak, Hays,
Osburn, Burns, Menz, and
Munson of the House
and
Daniels of the Senate
An Act relating to the Unfair Sales Act; amending 15
O.S. 2021, Sections 598.2 and 598.3, which relate to
the Unfair Sales Act; modifying definitions; defining
terms; modifying provisions related to unreasonably
low profit margins; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Section 598.2, is
amended to read as follows:
Section 598.2. For the purposes of the Unfair Sales Act:
(a) The
1. a. 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,
whichever is the lower; less all trade discounts
except customary discounts for cash; to which shall be
added (1) freight charges not otherwise included in
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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. For gasoline and diesel fuel retailers, 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, whichever is the
lower; less all trade discounts except customary
discounts for cash; to which shall be added (1)
freight charges not otherwise included in the invoice
cost or the replacement cost of the merchandise as
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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 stat e 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 her ein set
forth after adding thereto freight charges and cartage
but before adding thereto a markup ;
(b) 2. The term "cost to the wholesaler" means th e invoice cost
of the merchandise to the wholesaler, or the replacement cost of the
merchandise to the whol esaler, whichever is the lower; less all
trade discounts except customary discounts for cash; 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
wholesaler, which cartage cost, in the absence of proof of a lesser
cost, shall be deemed to b e three-fourths of one percent (3/4 of 1%)
of the cost to the wholesaler as herein set forth after adding
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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;
(c) 3. The term "replacement costs" means the cost per unit at
which the merchandise sold or offered for sal e could have been
bought by the seller at any time within thirty (30) days prior to
the date of sale or the date upon which it is offered for sale by
the seller if bought in the same quantity or quantities as the
seller's last purchase of said merchandise;
(d) 4. 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;
(e) 5. 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
or further processin g or manufacturing. The above terms shall
include any transfer of such property where title is retained by the
seller as security for the payment of the purchase price;
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(f) 6. The terms "sell at wholesale", "sales at wholesale", and
"wholesale sales" mea n and include any transfer for a valuable
consideration made in the ordinary course of trade or the usual
conduct of the seller's business, of title to tangible personal
property to the purchaser for purposes of resale or further
processing or manufacturin g. The above terms shall include any
transfer of such property where title is retained by the seller as
security for the payment of the purchase pri ce;
(g) 7. The term "retailer" means and includes every person,
partnership, corporation or association en gaged in the business of
making sales at retail within this state; provided that, in the case
of a person, partnership, corporation or association engaged in the
business of making both sales at retail and sales at wholesale, such
term shall be applied onl y to the retail portion of such business;
(h) 8. The term "wholesaler" means and includes every person,
partnership, corporation, or association eng aged in the business of
making sales at wholesale within this state; provided that, in the
case of a person, partnership, corporation or association engaged in
the business of making both sales at wholesale and sales at retail,
such term shall be applied only to the wholesale portion of such
business; and
9. The term "unreasonably low profit margin" means a se ller 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
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otherwise defined by this act, but with an increment in price above
such cost that is intended to have the effect of elim inating 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 fo r 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 .
SECTION 2. AMENDATORY 15 O.S. 2021, Section 598.3, is
amended to read as follows:
Section 598.3. 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 preve nt 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
unreasonably restrain trade, or to tend to create a monopoly in an y
line of commerce.
SECTION 3. This act shall become effective November 1, 2025.
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Passed the House of Representatives the 10th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2025.
Presiding Officer of the Senate