Prevention of competition by wholesale dealer; purchase of cigarettes below cost by retail dealer; penalty; prima facie evidence.
1. A wholesale dealer shall not engage in predatory pricing with intent to injure competitors or destroy or lessen competition substantially by:
(a) Advertising, offering to sell or selling at wholesale, cigarettes at less than the cost to the wholesale dealer; or
(b) Offering any rebate or concession in price or giving any rebate or concession in price in connection with the sale of cigarettes.
2. A retail dealer shall not engage in predatory pricing with the intent to injure competitors or destroy or lessen competition substantially by:
(a) Inducing, attempting to induce, procuring or attempting to procure the purchase of cigarettes at a price less than the cost to the wholesale dealer; or
(b) Inducing, attempting to induce, procuring or attempting to procure any rebate or concession in connection with the purchase of cigarettes.
3. A person who violates the provisions of this section shall be punished by a fine of not more than $50 for each offense.
4. Evidence of:
(a) An advertisement, an offer to sell or the sale of cigarettes by a wholesale dealer at less than the cost to him;
(b) An offer of a rebate in price, the giving of a rebate in price, an offer of a concession or the giving of a concession in connection with the sale of cigarettes; or
(c) The inducement, attempt to induce, procurement or attempt to procure the purchase of cigarettes at a price less than the cost to the wholesale dealer,
Ê is prima facie evidence of intent and likelihood to injure competition and to destroy or lessen competition substantially.
Last modified: February 27, 2006