AB 154

This bill eliminates the prohibition on below-cost sales of prescription drugs

and certain other types of merchandise under the Unfair Sales Act.

This state's Unfair Sales Act, also known as the “minimum markup” law, 1)

prohibits below-cost sales of any merchandise, if the sale is intended to induce the

purchase of other merchandise or divert trade unfairly from a competitor; and 2)

requires a “minimum markup” (a specified amount over the cost of the merchandise

to the seller) to be added to sales of motor vehicle fuel, tobacco products, fermented

malt beverages, liquor, or wine. There is no minimum markup requirement for sales

of prescription drugs.

Under this bill, the prohibition on below-cost sales does not apply to

prescription drugs or to any merchandise other than groceries, motor vehicle fuel,

tobacco products, fermented malt beverages, liquor, or wine. The bill does not affect

the minimum markup requirements under current law for sales of motor vehicle fuel,

tobacco products, fermented malt beverages, liquor, or wine.