Bill S2442-2011

Provides that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality

Provides that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality.

Details

Actions

  • Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
  • Jan 21, 2011: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S2442

TITLE OF BILL: An act to amend the general business law, in relation to providing that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality

PURPOSE: To prohibit the use of zone pricing as a marketing device for gasoline.

SUMMARY OF PROVISIONS: Section 1: Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008 is amended. Section 2: adds "retailer" to those entities who cannot engage in zone pricing

EXISTING LAW: Chapter 579 of the laws of 2008.

JUSTIFICATION: Zone pricing is a marketing technique currently used by petroleum companies. The company determines geographical price zones based on the demographics of a certain area. For example, if one area typically is more affluent than another, the tank wagon price, in other words, the price per gallon determined by the wholesaler, at which gasoline is offered for sale to the retailers may be slightly higher in that area, than an area where the clientele is primarily a working class neighborhood. Because the petroleum companies increase the amount charged to the service station dealers for the gasoline in those designated zones, this cost is then passed on to the consumers. Thus, the result of zone pricing is higher prices at the pump for individuals who are assumed to be able to pay more. This legislation would prohibit this discriminatory pricing policy.

This simple change merely adds retailer to those entities who are not permitted to engage in zone pricing with respect to any motor fuel of like grade or quality. This language should have been included in the initial legislation, so this is merely a small adjustment.

LEGISLATIVE HISTORY: 2009-2010: S.7122 - Consumer Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 2442 2011-2012 Regular Sessions IN SENATE January 21, 2011 ___________
Introduced by Sen. ALESI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to providing that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows: 2. No wholesaler OR RETAILER shall engage in zone pricing with respect to any motor fuel of like grade or quality. S 2. This act shall take effect immediately.

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