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 Delaware? What are the requirements?

According to Delaware law, it is generally illegal to engage in price discrimination between different sections, communities, or cities of the state, by selling a commodity at a lower rate in one section, community, or city, or any portion thereof, than in another, after making due allowance for any difference in the grade or quality and in the cost of transportation from the point of production, if a raw product, or from the point of manufacture, if a manufactured product [1.1]. Therefore, charging different prices to different customers based on their location within Delaware could be considered price discrimination and may be subject to penalties.

However, it is important to note that this law only applies to intentional discrimination for the purpose of destroying competition or preventing competition of any person who in good faith intends or attempts to become a dealer in the commodity [1.1]. If the price difference is based on legitimate factors such as transportation costs or differences in quality, then it may not be considered price discrimination.

Additionally, Delaware law prohibits the splitting or dividing of sales transactions [2.1]. Furthermore, charges included in a contract service charge must be inclusive of all charges incident to investigating and making the contract and for the extension of the credit provided for in the contract, and no fee, expense or other charge whatsoever shall be taken, received, reserved or contracted for except as otherwise provided in this chapter [2.2]. A retail seller or the holder of a retail installment contract may charge and collect a service charge in respect of a retail installment sale and may calculate such service charge in the manner and at the rate or rates specified in the contract governing the sale [2.3].

In summary, charging different prices to different customers without a legitimate reason could be considered price discrimination and may be subject to penalties in Delaware. It is important to ensure that any price differences are based on legitimate factors and not intended to harm competition. Additionally, Delaware law prohibits the splitting or dividing of sales transactions and requires that charges included in a contract service charge be inclusive of all charges incident to investigating and making the contract.

Source(s):
Jurisdiction

Delaware