Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0770 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- S 0770
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7	7	LC001925
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISION S --
16	16	UNFAIR SALES PRACTICES
17	17	Introduced By: Senators Gu, Ciccone, DiPalma, Murray, LaMountain, Britto, Bissaillon,
18	18	Sosnowski, Mack, and Kallman
19	19	Date Introduced: March 14, 2025
20	20	Referred To: Senate Commerce
21	21	(Lieutenant Governor)
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 6-13-1 of the General Laws in Chapter 6-13 entitled "Unfair Sales 1
25	25	Practices" is hereby amended to read as follows: 2
26	26	6-13-1. Definitions. 3
27	27	(a) “Cost to the retailer” means the invoice cost of the merchandise to the retailer within 4
28	28	thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to the 5
29	29	retailer within thirty (30) days prior to the date of the sale, in the quantity last purchased, whichever 6
30	30	is lower; less all trade discounts except customary discounts for cash; to which shall be added: 7
31	31	(1) Freight charges not otherwise included in the cost of the merchandise; 8
32	32	(2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost 9
33	33	shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the 10
34	34	retailer, unless the retailer claims and proves a lower cartage cost; and 11
35	35	(3) A markup to cover in part the cost of doing business, which markup, in the absence of 12
36	36	proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet. 13
37	37	(b) “Cost to the wholesaler” means the invoice cost of the merchandise to the wholesaler 14
38	38	within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to 15
39	39	the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased, 16
40	40	whichever is lower; less all trade discounts except customary discounts for cash; to which shall be 17
41	41	added: 18
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44	44	LC001925 - Page 2 of 4
45	45	(1) Freight charges not otherwise included in the cost of the merchandise; 1
46	46	(2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage 2
47	47	cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to 3
48	48	the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and 4
49	49	(3) A markup to cover in part the cost of doing business, which markup, in the absence of 5
50	50	proof of a lesser cost, shall be two percent (2%) of the total cost at the wholesale establishment. 6
51	51	(c) Where two (2) or more items are advertised; offered for sale; or sold at a combined 7
52	52	price; the price of each item shall be determined in the manner stated in subsections (a) and (b). 8
53	53	(d) “Sell at retail”, “sales at retail”, and “retail sale” mean and include any transfer of title 9
54	54	to tangible personal property for a valuable consideration made in the ordinary course of trade or 10
55	55	in the usual prosecution of the seller’s business to the purchaser for consumption or use other than 11
56	56	resale or further processing or manufacturing. In this and in the preceding subsection the previous 12
57	57	terms shall include any transfer of property where title is retained by the seller as security for the 13
58	58	payment of the purchase price. 14
59	59	(e) “Retailer” means and includes every person, co-partnership, corporation, or association 15
60	60	engaged in the business of making sales at retail within this state; provided, that, in the case of a 16
61	61	retailer engaged in the business of making sales both at retail and at wholesale, the term shall be 17
62	62	applied only to the retail portion of the business. 18
63	63	(f) “Wholesaler” means and includes every person, partnership, corporation, or association 19
64	64	engaged in the business of making sales at wholesale within this state; provided, that, in the case 20
65	65	of a wholesaler engaged in the business of making sales both at wholesale and at retail, the term 21
66	66	shall be applied only to the wholesale portion of the business. 22
67	67	(g) Whenever any person, partnership, corporation, or association in the course of doing 23
68	68	business performs the functions of both wholesaler and retailer without actually being engaged in 24
69	69	the business of making sales at wholesale, the term “wholesaler” means and includes that function 25
70	70	of the business of preparation for sale at the retail outlet, and the term “retailer” shall be applied 26
71	71	only to the retail portion of the business. 27
72	72	(h) “Household” means and includes those who dwell under the same roof, house, or 28
73	73	apartment. 29
74	74	(i) “Rebate” means a refund of a portion of the purchase price made to consumer to induce 30
75	75	purchase of product. 31
76	76	(j) "Digital coupon" means any store coupon, rebate, or similar instrument presented solely 32
77	77	through the Internet, and only obtainable through a consumer's personal computing device, and that 33
78	78	provides to a consumer a discounted price or benefit, redeemable at the physical location where the 34
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82	82	goods or services are being offered for sale. 1
83	83	SECTION 2. Section 6-13-11 of the General Laws in Chapter 6-13 entitled "Unfair Sales 2
84	84	Practices" is hereby amended to read as follows: 3
85	85	6-13-11. Discount price advertisement. 4
86	86	(a) It shall be unlawful to use, communicate, or publish any advertisement that states that 5
87	87	an item or product is being sold or offered for sale at below the regular price or at a percentage off 6
88	88	the regular price without posting the regular price at the point of purchase. 7
89	89	(b) Whenever an item or product is advertised for sale at below the regular price or at a 8
90	90	percentage off the regular price, the advertisement shall clearly state whether there is an additional 9
91	91	charge for equipment or services that are reasonably necessary for the proper use of the product. 10
92	92	(c) Whenever food and related items, as defined in § 44-18-7.1, are advertised by a retailer 11
93	93	for sale at or below the regular price or at a percentage off the regular price through the redemption 12
94	94	of a digital coupon, the retailers shall provide a purchaser with the ability to obtain the same 13
95	95	discounted price or other benefit offered by the digital coupon through an alternative method not 14
96	96	requiring the use of a personal computing device. Such alternative methods may include, but are 15
97	97	not limited to, paper coupons, electronic kiosks, or application of the discounted price or benefit at 16
98	98	the point-of-sale upon the request of the consumer. Such in-store alternatives shall be readily 17
99	99	available and easily accessible to the consumer, and in the case of electronic kiosks, be prominently 18
100	100	displayed in the store. 19
101	101	(d) Any person, firm, or corporation who or that shall violate the provisions of this section 20
102	102	shall be punished by a fine of not more than five hundred dollars ($500). 21
103	103	(e) Severability. If any portion of this section is found by a court of competent jurisdiction 22
104	104	to be unlawful, such finding shall not affect any other portion of said section not specifically so 23
105	105	found. 24
106	106	SECTION 3. This act shall take effect on January 1, 2026. 25
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113	113	EXPLANATION
114	114	BY THE LEGISLATIVE COUNCIL
115	115	OF
116	116	A N A C T
117	117	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISIONS --
118	118	UNFAIR SALES PRACTICES
119	119	***
120	120	This act would provide that stores offering food product discounts must provide the same 1
121	121	discounts to in store customers that are offered to customers using electronic digital coupons. 2
122	122	This act would take effect on January 1, 2026. 3
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