Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0991 Compare Versions

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

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5	5	2025 -- S 0991
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7	7	LC001923
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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	PROTECTING RHODE ISLANDERS FROM COERCIVE ECONOMIC TACTICS AT
17	17	GROCERY STORES
18	18	Introduced By: Senator Robert Britto
19	19	Date Introduced: April 17, 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. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL 1
25	25	REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: 2
26	26	CHAPTER 61 3
27	27	PROTECTING RHODE ISLANDERS FROM COERCIVE ECONOMIC TACTICS AT 4
28	28	GROCERY STORES 5
29	29	6-61-1. Short title. 6
30	30	This chapter shall be known and may be cited as the “Price Tags Act”. 7
31	31	6-61-2. Definitions. 8
32	32	For the purposes of this chapter: 9
33	33	(1) “Channels of trade” means the distinct and diverse pathways through which covered 10
34	34	goods are marketed, distributed, and sold to consumers in the United States, including traditional 11
35	35	supermarkets, hypermarkets, discount stores, convenience stores, online or e-commerce retailers, 12
36	36	specialty food stores, mass merchandisers, wholesale clubs, and any other retail establishments, 13
37	37	platforms, or entities that engage in the sale of covered goods, either primarily or as a segment of 14
38	38	their broader retail offering, and compete for consumer grocery dollars. 15
39	39	(2) “Covered goods” means a grocery item, including any item described in paragraph (1) 16
40	40	or (2) of the definition of eligible foods under section 271.2 of title 7, Code of Federal Regulations, 17
41	41	or a consumer-packaged goods and excludes gasoline, prescription drugs, tobacco, and alcoholic 18
42	42
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45	45	beverages. 1
46	46	(3) “Covered retailer” means a person that sells covered goods to end purchasers at one or 2
47	47	more physical locations in Rhode Island. 3
48	48	(4) “Covered supplier” means a person that: 4
49	49	(i) Produces and sells covered goods in Rhode Island; and, 5
50	50	(ii) Sells, directly or through its agent or any third party with which the covered supplier 6
51	51	contracts, covered goods produced or manufactured by the person, directly or through its agent or 7
52	52	any third party with which the covered supplier contracts, to covered retailers or covered 8
53	53	wholesalers in an aggregate amount exceeding six billion dollars ($6,000,000,000) (as adjusted 9
54	54	each year by an amount equal to the percentage increase, if any, in the Consumer Price Index for 10
55	55	All Urban Consumers published by the Department of Labor) per year. 11
56	56	(5) “Covered wholesaler” means a person that purchases covered goods for the purpose of 12
57	57	reselling or distributing them to covered retailers in Rhode Island. 13
58	58	(6) “Dominant covered retailer” means a covered retailer with: 14
59	59	(i) Annual retail sales of covered goods in an aggregate amount exceeding eighteen billion 15
60	60	dollars ($18,000,000,000) (as adjusted each year by an amount equal to the percentage increase, if 16
61	61	any, in the Consumer Price Index for All Urban Consumers published by the Department of Labor); 17
62	62	and 18
63	63	(ii) Not less than one storefront or distribution center located in more than twenty (20) 19
64	64	states including Rhode Island operated by the covered retailer, the covered retailer’s parent 20
65	65	company, and/or subsidiaries of the same parent company. 21
66	66	(7) “Person” includes: 22
67	67	(i) Each entity that a person owns or controls, in whole or in part; and 23
68	68	(ii) Each entity that owns or controls the person, in whole or in part; 24
69	69	(8) “Pricing differential” means, with respect to the volume unit basis of a covered good 25
70	70	purchased by a covered retailer or covered wholesaler compared to the volume unit basis of a 26
71	71	product purchased a dominant covered retailer, means: 27
72	72	(i) The difference in price of the product multiplied by the quantity sold; or 28
73	73	(ii) The difference in the price equivalent of the terms of sale of the product, discounted to 29
74	74	present value, if needed, to account for any difference in payment terms, multiplied by the quantity 30
75	75	sold. 31
76	76	(9) “Same covered good” means, with respect to two (2) different covered goods, a covered 32
77	77	good and any other covered good sold under the same brand that differs only in quantity or 33
78	78	packaging. 34
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82	82	(10) “Same terms of sale” means, with respect to two (2) different agreements, terms of 1
83	83	sale that are identical on a per unit basis, excluding shipping and delivery costs, which may vary 2
84	84	on account of distance, speed, or method of shipping and delivery, or availability of self-3
85	85	distribution. 4
86	86	(11) “Terms of sale” means all substantive terms and conditions of sale commonly subject 5
87	87	to negotiation and competition, including price, discounts, rebates, delivery terms, payment terms, 6
88	88	package size, promotional allowances, marketing devices, merchandising arrangements, terms of 7
89	89	distribution, and any other similar terms, considered on a per unit basis as appropriate. 8
90	90	(12) “Volume unit basis” means the base unit of measurement, not exceeding a truckload, 9
91	91	by which purchase quantities are measured in purchase agreements between a covered supplier and 10
92	92	a covered retailer or covered wholesaler. 11
93	93	6-61-3. Ensuring price fairness. 12
94	94	It shall be unlawful for: 13
95	95	(1) A covered supplier, directly or through its agent, to fail to extend the same terms of sale 14
96	96	of a covered good to all covered retailers and covered wholesalers that purchase the covered good 15
97	97	on the same volume unit basis in reasonably contemporaneous sales; 16
98	98	(2) A covered supplier to fail to provide, within fourteen (14) days of a written request 17
99	99	from a covered retailer or covered wholesaler that has purchased a covered good or received an 18
100	100	offer including terms of sale for a covered good from the covered supplier, directly or through its 19
101	101	agent, the anonymized terms of sale from all contracts with dominant covered retailers that 20
102	102	purchased the same covered good on the same volume unit basis during the one hundred eighty 21
103	103	(180) day period prior to which the purchase or offer including terms of sale was made; 22
104	104	(3) A covered supplier, directly or through its agent, to refuse the sale of a covered good to 23
105	105	a covered retailer or a covered wholesaler if: 24
106	106	(i) The covered retailer is not a dominant covered retailer; 25
107	107	(ii) The covered retailer or the covered wholesaler has made and completed payment for 26
108	108	purchases from the covered supplier within the previous twelve (12) months; 27
109	109	(iii) The covered retailer or the covered wholesaler has made a request of the covered 28
110	110	supplier to provide to such retailer or wholesaler the same terms of sale provided to other covered 29
111	111	retailers or covered wholesalers, consistent with the terms of this section; and 30
112	112	(iv) A refusal by the covered supplier to sell a covered good to the covered retailer or 31
113	113	covered wholesaler has no commercially reasonable justification; 32
114	114	(4) A dominant covered retailer, or its purchasing agent or any third party through which a 33
115	115	dominant covered retailer contracts to purchase covered goods, directly or indirectly, to take any 34
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119	119	action that such dominant covered retailer, purchasing agent, or third party intends, knows, or 1
120	120	should know will coerce or induce a covered supplier to violate this section. 2
121	121	6-61-4. Agency liability. 3
122	122	A covered supplier or dominant covered retailer, as applicable, shall be liable for any 4
123	123	violation of § 6-61-3 by a contracted third party. 5
124	124	6-61-5. Defenses. 6
125	125	A person alleged to have engaged in unlawful conduct described in § 6-61-3 shall not be 7
126	126	liable for such conduct on showing, by a preponderance of the evidence, that: 8
127	127	(1) Any difference in the terms of sale was predominantly attributable to a covered retailer 9
128	128	engaging in self-distribution of the covered good at issue or otherwise lowering the overall costs of 10
129	129	the covered supplier through genuine efficiencies including, but not limited to, economies in 11
130	130	distribution or manufacturing; 12
131	131	(2) A covered retailer, in exchange for commercially reasonable consideration, voluntarily 13
132	132	accepted terms of sale relating to a covered good that were not the same terms of sale as the terms 14
133	133	of sale offered to another covered retailer; 15
134	134	(3) The terms of sale applied only to cases in which there was an actual or imminent 16
135	135	deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court 17
136	136	process, or sales in good faith in discontinuance of business in the goods concerned. 18
137	137	6-61-6. Covered supplier immunity. 19
138	138	Provided that a covered supplier did not collude with the relevant dominant retailer in any 20
139	139	scheme violative of the antitrust laws, a covered supplier shall be immune from liability for a 21
140	140	violation of § 6-61-3 where the defendant covered supplier shows by a preponderance of the 22
141	141	evidence that: 23
142	142	(1) The violation was imposed on or required of the defendant covered supplier by a 24
143	143	dominant covered retailer; 25
144	144	(2) The defendant covered supplier would have suffered substantial harm to its business 26
145	145	were it to refuse the demand of the dominant retailer; and 27
146	146	(3) The defendant covered supplier made a good faith effort to disclose the dominant 28
147	147	covered retailer’s conduct to the office of the attorney general. 29
148	148	6-61-7. Enforcement. 30
149	149	The attorney general or a covered retailer, covered wholesaler, or covered supplier injured 31
150	150	by a violation of this chapter may file suit to: 32
151	151	(1) Obtain an injunction to cure a violation of this chapter; 33
152	152	(2) Obtain a civil penalty or damages in an amount not greater than: 34
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156	156	(i) One and one-half (1½) the actual damages, or 1
157	157	(ii) The pricing differential suffered by a covered retailer or a covered wholesaler; or 2
158	158	(3) Both subsections (a)(1) and (a)(2) of this section. 3
159	159	6-61-8. Rules of construction. 4
160	160	Definition. For purposes of this chapter, the term “antitrust laws”: 5
161	161	(1) Has the meaning given that term in subsection (a) of the first section of the Clayton Act 6
162	162	(15 U.S.C. 12(a); and 7
163	163	(2) Includes: 8
164	164	(i) Section 45 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent such 9
165	165	section 45 applies to unfair methods of competition; and 10
166	166	(ii) Includes any Rhode Island law similar to the laws described in subsection (1) and (2)(i) 11
167	167	of this section. 12
168	168	(2) No effect on antitrust laws. Notwithstanding any provision of this chapter or an 13
169	169	amendment made by this chapter, this chapter shall not be construed to limit, impair, or supersede 14
170	170	any of the antitrust laws. 15
171	171	6-61-9. Severability. 16
172	172	If any portion of this chapter is found by a court of competent jurisdiction to be unlawful, 17
173	173	such finding shall not affect any other portion of said chapter not specifically so found. 18
174	174	SECTION 2. This act shall take effect upon passage. 19
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181	181	EXPLANATION
182	182	BY THE LEGISLATIVE COUNCIL
183	183	OF
184	184	A N A C T
185	185	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISIONS --
186	186	PROTECTING RHODE ISLANDERS FROM COERCIVE ECONOMIC TACTICS AT
187	187	GROCERY STORES
188	188	***
189	189	This act would create a new chapter to protect Rhode Island consumers from coercive 1
190	190	tactics at grocery stores. 2
191	191	This act would take effect upon passage. 3
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