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Can I charge different prices to different customers without violating discrimination laws in Iowa? What are the requirements?
Can I charge different prices to different customers without violating discrimination laws in Iowa? What are the requirements?
According to IACO 551.1, any person, firm, company, association, or corporation, foreign or domestic, doing business in the state, and engaged in the production, manufacture, sale, or distribution of any commodity of commerce or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency, that shall, for the purpose of destroying the business of a competitor in any locality or creating a monopoly, discriminate between different sections, localities, communities or cities of this state, by selling such commodity or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency at a lower price or rate in one section, locality, community or city than such commodity or commercial services excepting those, the rate of which is now subject to control of cities or other governmental agency is sold for by said person, firm, association, company, or corporation, in another section, locality, community or city, after making due allowance in case of telephone service for the difference in the cost of furnishing service in different localities, and in the case of commodities and commercial services other than telephone service, for the difference, if any, in the grade or quality, and in the actual cost of transportation from the point of production or purchase, if a raw product, or from the point of manufacture, if a manufactured product, to a place of sale, storage, or distribution shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be unlawful. However, prices made to meet competition in such section, locality, community or city shall not be in violation of this section [1.2].
Therefore, charging different prices to different customers may be considered unlawful discrimination if it is done for the purpose of destroying the business of a competitor or creating a monopoly. However, prices made to meet competition in such section, locality, community or city shall not be in violation of this section.
It is important to note that a local entity or a person employed by or otherwise under the direction or control of a local entity shall not consider race, skin color, language spoken, or national origin while enforcing state, local, and municipal laws except to the extent permitted by the Constitution of the United States or the Constitution of the State of Iowa [2.1].
In summary, charging different prices to different customers may be considered unlawful discrimination if it is done for the purpose of destroying the business of a competitor or creating a monopoly. However, prices made to meet competition in such section, locality, community or city shall not be in violation of this section.
Source(s):
Jurisdiction
Iowa