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MI HB5752
Bill
Status
6/14/2012
Primary Sponsor
John Olumba
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AI Summary
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Adds Section 3a to the Michigan Antitrust Reform Act prohibiting price discrimination when selling commodities of like grade and quality to different purchasers in trade or commerce within Michigan if the discrimination may substantially lessen competition or destroy a competitor.
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Prohibits parties to sales from knowingly discriminating against competitors by granting unequal discounts, rebates, or allowances; selling at lower prices in one part of the state than another for competitor elimination; or selling at unreasonably low prices to destroy competition.
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Provides exemptions for price differentials based on reasonable cost differences, customer selection in bona fide transactions, price changes responding to market conditions (including perishable goods deterioration, seasonal obsolescence, distress sales, and business discontinuation), temporary retail sales undertaken in good faith, and price differentials between a seller's multiple retail locations unless intended to eliminate competitors.
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Shifts burden of proof to defendants charged with price discrimination violations once a prima facie case is established, requiring defendants to affirmatively show justification such as cost differences, good faith competitive pricing, or qualifying exemptions.
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Amends Section 9 to establish criminal penalties for violations of Sections 2, 3, or 3a: up to 2 years imprisonment and/or $10,000 fine for individuals, or up to $1,000,000 fine for non-individuals, and prevents duplicate criminal prosecution under federal Sherman Act or Robinson-Patman Act for the same conduct.
Legislative Description
Trade; antitrust; Michigan antitrust reform act; expand to include price discrimination. Amends sec. 9 of 1984 PA 274 (MCL 445.779) by adding sec. 3a.
Consumer protection, unfair trade practices
Last Action
Printed Bill Filed 06/15/2012
7/18/2012