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SPONSOR: |
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DATE TYPED: |
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HB |
989 |
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SHORT TITLE: |
Prohibit Certain Cigarette Maker Actions |
SB |
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ANALYST: |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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SUMMARY
Synopsis
of Bill
House Bill 989
prohibits a cigarette manufacturer from conditioning a retailer's receipt of a
consumer promotion or consumer price discount on the retailer's conduct or
actions relating to the manufacturer's products, or to the products of any
other manufacturer, as long as the retailer provides the promotion or discount
to consumers and advertises and displays the promotion.
HB 989 further
prohibits a cigarette manufacturer from requiring a retailer to allocate a
specified percentage or fraction of the retailer's merchandising, stocking,
display, shelf or advertising space to the manufacturer's products or
preventing, restricting or limiting a retailer from stocking, advertising,
displaying or participating in a program for another manufacturer's products;
Furthermore, cigarette
manufacturers are prevented, restricted or limited from determining the size or
location of the space that the retailer uses to stock, display, promote or
advertise cigarettes. The cigarette manufacturer cannot require a retailer to
raise its prices on, or prevent the retailer from reducing its prices on,
another manufacturer's products.
A cigarette
manufacturer who violates the provisions of this bill shall be liable for a penalty
of $1,000 to be recovered with the costs of the suit in a civil action brought
by a retailer or another manufacturer.
Significant
Issues
HB 989 promotes competition in the market place. A cigarette manufacturer cannot force a retailer to push his product at the expense of a competitor.
ADMINISTRATIVE IMPLICATIONS
There might be a
slight increase in the courts’ workload since HB 989 gives a cause for a civil
action.