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Can I offer discounts or promotions without violating pricing laws in Missouri? What are the requirements?

To determine whether discounts or promotions violate pricing laws in Missouri, we need to review several sections of the Missouri Revised Statutes (MORS).

Discounts and Promotions

MORS 416.440 prohibits milk processors or distributors from giving or offering any rebate, discount, free service or services, advertising allowance, pay for advertising space used jointly, donation, free merchandise, rent on space used by the retailer for storing or displaying the milk processor’s or distributor’s merchandise, financial aid, free equipment, or any other thing of value, with the intent or effect of unfairly diverting trade from a competitor, injuring a competitor, destroying competition, or creating a monopoly. However, this section does not prevent a processor or distributor from furnishing point-of-sale advertising material to a retailer without cost for the promotion of the sale of the processor’s or distributor’s products. Additionally, a discount of two percent or less for payment on or before a certain date is allowed [1.1].

MORS 416.425 prohibits nonprocessing retailers from advertising, offering to sell, or selling any milk product for less than cost to the retailer, with the intent or effect of unfairly diverting trade from a competitor, injuring a competitor, destroying competition, or creating a monopoly. Proof of the advertising, offer to sell, or sale of milk products by a nonprocessing retailer is prima facie evidence of a violation of this section [1.3].

MORS 311.070 prohibits distillers, wholesalers, winemakers, brewers, or their employees, officers, or agents from having any financial interest in the retail business for sale of intoxicating liquors, except for the promotion of tourism. They shall not loan, give away, or furnish equipment, money, credit, or property of any kind, except ordinary commercial credit for liquors sold to such retail dealers. However, they may provide consumer advertising specialties, equipment and supplies, nonrefrigeration dispensing accessories, and permanent point-of-sale advertising materials to retail businesses. They may also provide product displays and promotions to retail businesses, subject to certain restrictions [3.2].

MORS 407.610 requires any person who intends to use any promotional device or promotional program, including any sweepstakes, gift award, drawing or display booth, or any other such award or prize inducement items, to advertise, solicit sales or sell any time-share period, time-share plan, or time-share property in the state of Missouri or sell any tourist-related services as defined pursuant to subsection 9 of this section where a consumer is required to provide any consideration other than monetary for such tourist-related services, to notify the Missouri attorney general in writing of this intention not less than fourteen days prior to release of such materials to the public. Included with such notice shall be an exact copy of each promotional device and promotional program to be used. Each promotional device, promotional program, and the notice thereof shall include certain information [2.1].

Requirements

To offer discounts or promotions without violating pricing laws in Missouri, the following requirements must be met:

  1. Discounts or promotions must not have the intent or effect of unfairly diverting trade from a competitor, injuring a competitor, destroying competition, or creating a monopoly.
  2. Discounts or promotions must not be offered for less than cost to the retailer.
  3. Discounts or promotions must not be provided by distillers, wholesalers, winemakers, brewers, or their employees, officers, or agents who have a financial interest in the retail business for sale of intoxicating liquors, except for the promotion of tourism.
  4. Discounts or promotions must comply with the restrictions on consumer advertising specialties, equipment and supplies, nonrefrigeration dispensing accessories, permanent point-of-sale advertising materials, product displays, and promotions set forth in MORS 311.070.
  5. Promotional devices or promotional programs, including any sweepstakes, gift award, drawing or display booth, or any other such award or prize inducement items, to advertise, solicit sales or sell any time-share period, time-share plan, or time-share property in the state of Missouri or sell any tourist-related services as defined pursuant to subsection 9 of this section where a consumer is required to provide any consideration other than monetary for such tourist-related services, must comply with the requirements set forth in MORS 407.610 [1.1][2.1][1.3][3.2].

Therefore, discounts and promotions are allowed in Missouri as long as they comply with the requirements set forth in the relevant statutes.

Source(s):
Jurisdiction

Missouri