Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I charge different prices to different customers without violating discrimination laws in Connecticut? What are the requirements?

Charging Different Prices to Different Customers in Connecticut

In Connecticut, it is generally prohibited to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption or resale within Connecticut, and where the effect of such discrimination may be to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them [1.1]. Therefore, charging different prices to different customers without justification may violate discrimination laws in Connecticut.

However, there are exceptions to this rule. Differentials which only make due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are sold or delivered to such purchasers are allowed [1.1]. Additionally, persons engaged in selling goods, wares or merchandise in commerce are allowed to select their own customers in bona fide transactions and not in restraint of trade [1.1].

If a prima facie case of discrimination in price is proven, the burden of rebutting the case by showing justification shall be upon the person charged with a violation of this section, and unless justification shall be affirmatively shown, an order terminating the discrimination may be issued [1.1]. However, a seller may rebut the prima facie case by showing that their lower price to any purchaser or purchasers was made in good faith to meet an equally low price of a competitor [1.1].

Antitrust Laws in Connecticut

It is important to note that nothing contained in Connecticut’s antitrust laws shall be deemed to supersede, restrict or otherwise limit the continuing applicability of the antitrust laws of the state of Connecticut [2.1].

Other Relevant Connecticut Laws

There are other Connecticut laws that may be relevant to discrimination in pricing. For example, no life insurance company doing business in Connecticut may deny or refuse to accept an application for life insurance, refuse to renew, cancel, restrict or otherwise terminate a policy of life insurance, or make any distinction or discrimination between persons as to the premiums or rates charged for policies of life insurance, on the basis of any past or future lawful travel destination of the applicant or insured, except that such company may deny such application or charge a different premium or rate for coverage under such policy based on a specific lawful travel destination where the denial or rate differential is based on sound actuarial principles or is related to actual or reasonably anticipated experience [3.1].

Conclusion

In summary, charging different prices to different customers without justification may violate discrimination laws in Connecticut. However, differentials which only make due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are sold or delivered to such purchasers are allowed. Additionally, sellers may select their own customers in bona fide transactions and not in restraint of trade. If a prima facie case of discrimination in price is proven, the burden of rebutting the case by showing justification shall be upon the person charged with a violation of this section, and unless justification shall be affirmatively shown, an order terminating the discrimination may be issued. It is also important to note that Connecticut’s antitrust laws do not limit the applicability of other antitrust laws, and there may be other relevant Connecticut laws to consider [1.1][2.1][3.1].

Source(s):
Jurisdiction

Connecticut