Current Status Introducing Body:House Bill Number:3998 Primary Sponsor:Hallman Committee Number:26 Type of Legislation:GB Subject:Unfair trade practices Residing Body:House Current Committee:Labor, Commerce and Industry Companion Bill Number:707 Computer Document Number:CYY/15406SD.93 Introduced Date:19930414 Last History Body:House Last History Date:19930414 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Hallman Felder McElveen Meacham Cobb-Hunter Harvin Wofford Govan Fulmer Harrison Whipper Law Shissias Harrell Holt Sharpe Scott Koon Corning Carnell McAbee McTeer Inabinett Williams Neal Tucker Witherspoon Riser Quinn R. Young Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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3998 House 19930414 Introduced, read first time, 26
referred to Committee
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TO AMEND SECTION 39-5-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MERCHANDISING UNFAIR TRADE PRACTICES AND EXEMPTIONS, AND SECTION 39-3-150, RELATING TO THE PROVISION OF LAW THAT SALES AT LESS THAN COST FOR THE PURPOSE OF INJURING COMPETITORS IS A CONSPIRACY TO FORM A MONOPOLY, SO AS TO PROVIDE THAT ANY WHOLESALE OR RETAIL SALE OF MOTOR FUEL AT A LEVEL BELOW THE ACTUAL COST OF ACQUIRING THE PRODUCT, WHICH IS PERMITTED TO MEET COMPETITION, SHALL REQUIRE CERTAIN DOCUMENTATION OF THE COMPETITION'S PRICING; TO FURTHER AMEND SECTION 39-3-150 SO AS TO PROVIDE THAT EXCEPT TO MEET COMPETITION, NO PERSON MAY SELL ANY GRADE OF MOTOR FUEL AT A RETAIL OUTLET AT A PRICE THAT IS BELOW THE COST OF ACQUIRING THE PRODUCT PLUS TAXES AND TRANSPORTATION; AND TO AMEND THE 1976 CODE BY ADDING SECTION 39-41-255 SO AS TO REQUIRE EVERY SERVICE STATION TO POST IN A CONSPICUOUS PLACE THE SELF-SERVICE PUMP PRICE FOR EACH TYPE OF GASOLINE IT HAS AVAILABLE AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 39-5-350 of the 1976 Code is amended to read:
"Section 39-5-350. (A) No part of this article shall be construed to apply to sales at wholesale to hotels, restaurants, colleges, bona fide licensed contractors, farmers buying for their plantations, including labor on their own farms, boardinghouses, religious institutions, or county, city, federal, or state institutions or departments or to cooperative purchases for redistribution among farmers. Retail sales of merchandise of like grade and quality at a price to meet existing competition at any time in any town or locality are also exempt from the provisions of this article. But if such competition is created by any person in violation of this article or when any two or more persons contend that they are meeting the competition of the other and all would be making retail sales in violation of this article, except for the above provisions allowing existing competition to be met, any retailer affected thereby may enjoin all in such category from continuing such practices in any court of competent jurisdiction in this State.
(B) Any person selling motor fuel at wholesale or retail at a price below the actual cost of acquiring the product, including transportation and taxes, claiming exemption from this article on the basis that such sales of motor fuel by that person are at a price to meet existing competition under subsection (A) of this section shall keep and maintain records substantiating each effort to meet the competition, including the identity and place of business of the competitors whose competition that person is meeting. The records must be made available to the Department of Consumer Affairs and the Attorney General on request made in connection with any investigation of a possible violation of this article by the department or the Attorney General."
SECTION 2. Section 39-3-150 of the 1976 Code is amended to read:
"Section 39-3-150. (A) If any person engaged in the manufacture, sale, or distribution of any commodity in general use in this State shall, with the intent or purpose of driving out competition or for the purpose of financially injuring competitors, sell at less than cost of manufacture or at less than the cost of such commodity bought in the open markets plus the freight and other charges to point of destination or give away such product for the purpose of driving out competition or financially injuring any competitor engaged in the manufacture, sale, or distribution of such commodity in this State, such person shall be guilty of a conspiracy to form or secure a trust or monopoly in restraint of trade and of unfair discrimination, which is prohibited and declared to be unlawful. Any person violating any of the provisions of this section and any officer, agent, or receiver of any firm, company, association, or corporation or any member thereof or any individual guilty of a violation of this section shall be liable for a penalty of not less than five hundred dollars nor more than five thousand dollars to be recovered at the suit of the State in the court of common pleas of any county. The Attorney General may allow one-half of the penalties provided in this section to anyone who may conduct the suit and the Attorney General shall be authorized to proceed as provided in this article to enforce the provisions hereof. Each sale so proven under the provisions of this section shall be considered a separate offense.
(B) Sales of motor fuel in general use in this State at wholesale or retail at a price to meet existing competition which is below the actual cost of acquiring the product, including transportation and taxes, are exempt from the provisions of this section, provided that any person claiming the exemption shall keep and maintain records substantiating his effort to meet this competition, including the identity and place of business of the competitors whose competition that person is meeting. The records must be made available to the Department of Consumer Affairs and the Attorney General on request made in connection with any investigation of a possible violation of this section by the department or the Attorney General.
(C) Except as otherwise permitted to meet competition as provided by law, no person may sell any grade of motor fuel at a retail outlet at a price that is below the cost of acquiring the product plus taxes and transportation."
SECTION 3. The 1976 Code is amended by adding:
"Section 39-41-255. Every service station shall post in a conspicuous place the self-service pump price for each type of gasoline it has available; provided, that such posted price must include either the cash or the credit price but need not include both such prices. The manner in which the prices are posted must not conflict with any state or local laws or ordinances that regulate the size, use, or placement of billboards or signs."
SECTION 4. This act takes effect upon approval by the Governor.