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

According to TNCO 65-37-102, price differences among retail telecommunications customers are strictly prohibited if they are attributable to race, creed, color, religion, sex, or national origin. However, all other differences in pricing among retail telecommunications customers are presumed to be a function of the competitive market, and this presumption may be rebutted by evidence of price discrimination as prohibited by state law.

In determining whether differences in pricing among retail telecommunications customers constitute price discrimination as prohibited by state law, the commission shall consider all relevant factors, including, but not limited to, whether:

1. Customers have been or will be injured as a result of the alleged price differences;
2. There is a legitimate business reason to distinguish between the customers who are being treated differently;
3. Customers who are being treated differently are similarly situated;
4. Customers may choose a functionally equivalent service from an alternative service provider at substantially the same price and terms; and
5. The commission has determined previously that existing and potential competition is an effective regulator of the price of the service that is the subject of the complaint.

Therefore, charging different prices to different customers may be allowed as long as it is not based on race, creed, color, religion, sex, or national origin, and there is a legitimate business reason to distinguish between the customers who are being treated differently. The Tennessee public utility commission will consider all relevant factors to determine whether the pricing differences constitute price discrimination as prohibited by state law.

Jurisdiction

Tennessee

• General