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

---

S2442-2011 Actions

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

S2442-2011 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.

S2442-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2442

                         2011-2012 Regular Sessions

                              I N  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.







   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD08247-01-1