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SF2556 (Legislative Session 94 (2025-2026))

Consumer Grocery Pricing Fairness Act

Related bill: HF2149

AI Generated Summary

The Consumer Grocery Pricing Fairness Act (S.F. No. 2556) is a proposed Minnesota bill aimed at addressing price discrimination in grocery retail. It establishes legal protections to ensure fair pricing and equitable terms of sale between suppliers, wholesalers, and retailers.

Key Provisions:

  1. Definitions:

    • "Covered goods" include grocery and consumer packaged items but exclude gasoline, prescription drugs, tobacco, and alcohol.
    • "Covered retailer" refers to stores selling these goods in Minnesota.
    • "Covered supplier" applies to manufacturers that sell over $6 billion annually in grocery products.
    • "Dominant covered retailer" refers to retailers with annual sales over $18 billion and operations in at least 20 states.

  2. Prohibited Practices:

    • Suppliers must offer the same terms of sale to all covered retailers and wholesalers purchasing in similar volumes.
    • Suppliers cannot refuse to sell products based on trade channel distinctions if it results in unfair pricing.
    • Dominant retailers cannot coerce suppliers into pricing schemes that disadvantage smaller retailers.

  3. Defenses & Exemptions:

    • Suppliers can justify different terms if they result from cost efficiencies (e.g., self-distribution by a retailer).
    • Exemptions exist for perishable goods near expiration, seasonal closeouts, or distress sales.
    • Suppliers coerced by dominant retailers into unfair pricing may claim immunity if they report violations to the attorney general.

  4. Enforcement & Penalties:

    • The Minnesota Attorney General or affected businesses can sue for violations.
    • Remedies include injunctions to stop ongoing violations and civil penalties up to 1.5 times the damages or the price differential suffered.

  5. Relation to Antitrust Laws:

    • The bill does not replace or limit federal or state antitrust laws but complements them.

Purpose:

The bill aims to prevent price discrimination, protect smaller grocery retailers from unfair competition, and promote fair access to suppliers and competitive pricing in Minnesota.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025HouseFloorActionReferred toCommerce and Consumer Protection
March 12, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
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      "summary": "This bill defines 'antitrust law' to include the federal Clayton Act under title 15, section 12a.",
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