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