Rhode Island House Bill H5552

Rhode Island 2025 Regular Session

• Introduced: 2/26/25
• Refer: 2/26/25

Caption

Creates a new chapter to protect Rhode Island consumers from coercive tactics at grocery stores.

Impact

Upon passage, H5552 would amend existing commercial law in Rhode Island to establish clear guidelines against unfair pricing tactics. This includes provisions that make it unlawful for suppliers to discriminate between retailers in terms of prices and sales conditions. The legislation empowers the Rhode Island Attorney General to enforce these new rules, allowing for civil penalties and legal action against violators. The intended outcome is to promote a more equitable marketplace, benefitting consumers and smaller retailers while ensuring compliance among larger grocery chains.

Summary

House Bill 5552, also known as the Price Tags Act, introduces measures aimed at protecting Rhode Island consumers from coercive economic tactics employed by grocery stores. The bill seeks to ensure fair pricing practices by requiring suppliers to extend the same terms of sale for grocery items to all retailers, not just those that dominate the market. This legislation is particularly significant as it attempts to level the playing field in a market where large retailers may exert undue influence over suppliers, potentially disadvantaging smaller competitors and consumers alike.

Contention

Debate surrounding H5552 may arise regarding the balance between regulating large retailers and ensuring market viability. Proponents argue that the bill is crucial for consumer rights and preventing monopolistic practices, ensuring that local grocery stores can compete fairly. However, critics may contend that excessive regulation could harm business operations and reduce the variety of goods available to consumers, ultimately impacting pricing competitiveness. Furthermore, defining and enforcing terms of 'coercive tactics' may pose challenges in practical application, which could lead to legal disputes and confusion among retailers and suppliers.