Unfair Sales Act under fire in Madison

Group hopes lawmakers
look at recent survey on law

A small business group is hoping state lawmakers will pay attention to a new survey about a price control law.

The Unfair Sales Act is under fire from legislators.

Also known as the minimum markup law, the act requires goods to be sold above cost and mandates a minimum gross profit for some things like gasoline. 

The law has a long history in the state, says Bill Smith, president of the state’s chapter of National Federation of Independent Business. 

“It was enacted back in 1939 with the specific purpose of being a mechanism for smaller businesses to respond to predatory pricing,” Smith said. “And the only purpose of predatory pricing is to eliminate competition.”

A new survey conducted by the group finds nearly two-thirds of its members support keeping the Unfair Sales Act. Bills have been introduced in Madison to overturn the law.