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

Yes, you can charge different prices to different customers in New Mexico as long as the differences in price are based on valid criteria and are not designed or intended to eliminate competition or to create a monopoly [1.1]. However, it is unlawful to discriminate in favor of one purchaser against another purchaser of a commodity bought for resale [1.1][1.2].

Valid Criteria for Price Differences

According to the Price Discrimination Act in New Mexico [1.1], differences in price are allowed if they are based on valid criteria, such as cost differentials due to geographic proximity, and are not designed or intended to eliminate competition or to create a monopoly.

Prohibition on Discrimination for Commodity Bought for Resale

It is unlawful to discriminate in favor of one purchaser against another purchaser of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of any services or facilities connected with the processing, handling, sale or offering for sale of the commodity purchased on terms not accorded to all purchasers on proportionally equal terms [1.1][1.2].

Additional Considerations

It is important to note that there are specific laws that apply to certain industries, such as the Price Discrimination Act for spirituous liquors [2.1] and the Public Utility Act for public utilities [3.1]. Additionally, it is a defense to any action under the Price Discrimination Act to show that the seller’s lower price, payment or furnishing of services or facilities to any purchaser was made in good faith to meet equally low prices of a competitor or the services or facilities furnished by a competitor [1.3].

In summary, charging different prices to different customers is allowed in New Mexico as long as the differences in price are based on valid criteria and are not designed or intended to eliminate competition or to create a monopoly. However, it is unlawful to discriminate in favor of one purchaser against another purchaser of a commodity bought for resale. There may be additional considerations for specific industries, and it is a defense to show that the lower price was made in good faith to meet equally low prices of a competitor. [1.1][2.1][3.1][1.3].

Source(s):
Jurisdiction

New Mexico