HOUSE BILL No. 6566


     December 3, 2002, Introduced by Rep. Kowall and referred to the Committee on Commerce.


        A bill to amend 1941 PA 271, entitled

   "An act to define certain unlawful trade practices connected with
   the sale or other transfer; or with the purchase for another of
   goods, wares or merchandise; to provide certain penalties for the
   commission of such unlawful trade practices; and to provide for
   enjoining the commission of such trade practices and permitting
   the rescission of certain contracts,"

   (MCL 445.101 to 445.109) by adding section 6d.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             SEC. 6D.  (1) IT IS AN UNFAIR TRADE PRACTICE FOR A CIGARETTE

 2
        MANUFACTURER TO DIRECTLY OR INDIRECTLY REQUIRE A RETAILER TO DO

 3
        EITHER OF THE FOLLOWING AS A CONDITION TO PARTICIPATING IN A CON-

 4
        SUMER PRICE OR PRODUCT PROMOTION OF THAT CIGARETTE MANUFACTURER:

 5
             (A) LIMIT OR RESTRICT THE RETAILER'S PRICING OR SALE OF ANY

 6
        PRODUCTS OF ANOTHER CIGARETTE MANUFACTURER.







   07760'02 *                                               DAM                                   2

 1
             (B) LIMIT OR RESTRICT THE RETAILER'S PARTICIPATION IN A

 2
        CONSUMER PRICE OR PRODUCT PROMOTION OFFERED BY ANOTHER CIGARETTE

 3
        MANUFACTURER.

 4
             (2) IT IS AN UNLAWFUL TRADE PRACTICE FOR A CIGARETTE MANU-

 5
        FACTURER TO DIRECTLY OR INDIRECTLY OFFER OR PROVIDE TO A RETAIL-

 6
        ER, OR A RETAILER TO ACCEPT FROM THE CIGARETTE MANUFACTURER, A

 7
        CONSUMER PRICE OR PRODUCT PROMOTION ON CIGARETTES UNLESS THE PRO-

 8
        MOTION MEETS ALL OF THE FOLLOWING:

 9
             (A) THE PROMOTION IS OFFERED TO EACH RETAILER IN THIS

10
        STATE.

11
             (B) THE TIME PERIOD AND DURATION OF THE PROMOTION, AND THE

12
        AMOUNT OF ANY DISCOUNT OR OTHER INCENTIVE OFFERED BASED ON THE

13
        NUMBER OF UNITS PURCHASED OR SOLD BY A RETAILER, IS THE SAME FOR

14
        EACH RETAILER.

15
             (C) THE MANUFACTURER AGREES TO REIMBURSE THE RETAILER FOR

16
        THE AMOUNT OF ANY DISCOUNTS OR OTHER INCENTIVES EARNED BY THE

17
        RETAILER, WITHIN 30 DAYS AFTER THE RETAILER OFFERS THE PROMOTION

18
        TO CONSUMERS.  THE CIGARETTE MANUFACTURER MAY REQUIRE THE

19
        RETAILER TO PROVIDE THE FULL AMOUNT OF ANY DISCOUNT OR OTHER

20
        INCENTIVE INCLUDED IN THE PROMOTION TO CONSUMERS BUT MAY NOT

21
        IMPOSE ANY OTHER CONDITIONS ON ITS OBLIGATION TO REIMBURSE THE

22
        RETAILER UNDER THIS SUBDIVISION.













   07760'02 *          Final page.                          DAM