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

To offer discounts or promotions without violating pricing laws in South Dakota, you must comply with the provisions of SDCL 35-4-129 [1.1]([1.1]). This means that any quantity discount or cash discount offered by a retailer to a consumer must comply with the provisions of this section. Additionally, SDCL 37-10-14 [2.3]([2.3]) states that in all advertisements, offers for sale or sales involving two or more items, at least one of which items is cigarettes, at a combined price, and in all advertisements, offers for sale or sales involving the giving of any concession of any kind whatsoever, the retailer’s or wholesaler’s selling price shall not be below the cost to the retailer or the cost to the wholesaler, respectively, of the products included in such transactions.

However, it is important to note that SDCL 37-10-2 [2.4]([2.4]) makes it unlawful for any retailer, wholesaler or other person with intent to injure competitors or destroy or substantially lessen competition, to advertise, offer to sell, or sell, at retail or wholesale, products at less than cost as defined in this chapter, to such a retailer or wholesaler, as the case may be. Evidence of advertisement, offering to sell or sale of products by any retailer or wholesaler at less than cost to him or evidence of any offer of a rebate in price or the giving of a rebate in price or an offer of a concession or the giving of a concession of any kind or nature whatsoever in connection with the sale of products, if such rebate or concession offered or given in connection with the sale of products is not offered or given by the wholesaler or retailer in the same ratio with respect to all other merchandise as to which such rebate or concession may lawfully be given which is sold by such wholesaler or retailer in the ordinary course of his trade or business, or the inducing or attempt to induce or the procuring or the attempt to procure the purchase of products at a price less than cost to the wholesaler or the retailer shall be prima facie evidence of intent to injure competition and to destroy or substantially lessen competition [2.1]([2.1]).

Therefore, to offer discounts or promotions, you must ensure that the discounts comply with the provisions of SDCL 35-4-129 and that the selling price is not below the cost to the retailer or the cost to the wholesaler, respectively, of the products included in the transaction, as required by SDCL 37-10-14. You must also ensure that the discounts are not offered with the intent to injure competitors or destroy or substantially lessen competition, as prohibited by SDCL 37-10-2.

Requirements for offering discounts or promotions

  • Comply with the provisions of SDCL 35-4-129
  • Ensure that the selling price is not below the cost to the retailer or the cost to the wholesaler, respectively, of the products included in the transaction, as required by SDCL 37-10-14.
  • Do not offer discounts with the intent to injure competitors or destroy or substantially lessen competition, as prohibited by SDCL 37-10-2.
Source(s):
Jurisdiction

South Dakota