Bill > SB1226

This bill, titled the "Consumer Grocery Pricing Fairness Act," aims to regulate pricing practices for certain goods in Arizona by adding a new article to existing trade practice laws. It defines "covered goods" as food products for home consumption and seeds or plants for home gardens, excluding items like gasoline, prescription drugs, tobacco, and alcohol. The bill establishes requirements for "covered suppliers," which are entities that produce and sell covered goods, and "covered retailers" and "covered wholesalers" who sell these goods within the state. Key provisions include requiring covered suppliers to offer the same "terms of sale" – which encompass price, discounts, delivery, payment terms, and other conditions – to all covered retailers and wholesalers purchasing goods on the same "volume unit basis" (the standard unit for purchase agreements, not exceeding a truckload). Suppliers must also provide anonymized sales data, including terms of sale, to retailers and wholesalers upon request. The bill prohibits suppliers from refusing to sell to a retailer based on discriminatory pricing across different "channels of trade" (ways goods are sold, like supermarkets or online) or for other reasons violating the article, unless the retailer is a "dominant covered retailer" (a large retailer with significant sales and a presence in at least 21 states). Conversely, dominant covered retailers are restricted from imposing terms of sale that would lead them to acquire more goods than they can sell or to coerce suppliers into violating the act. The bill outlines defenses against violations, such as differences in terms being due to a retailer's self-distribution, efficiencies, voluntary acceptance of terms for consideration, or specific situations like perishable goods or business closures. It also provides protections for suppliers if a dominant covered retailer imposes unfair terms. Violations are considered unlawful practices, and the Attorney General can investigate and take action, with individuals injured by violations able to sue for injunctions or civil penalties up to three times the "actual damages" (the difference in price paid).

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/84542