Pricing Regulations Get Hearing in Committee
This morning the Assembly Consumer Affairs Committee discussed a series of bill that all would force businesses to deal with more red tape, and most of them were related to pricing practices.
The most impactful one was the “Tariff Transparency Act”. This would require every business that sells products or services to consumers to explicitly list what portion of the price they are charging is due to every form of tariff that impacts it. The tariffs are a vastly complex web that has proven to be ever changing, and expecting your businesses to keep up with it all is unreasonable. Businesses would be periodically audited by the State to make sure their calculations were correct and would be fined up to $500 per error.
Your suppliers would also be required to keep track of both tariffs they pay, and tariffs paid by the people they buy from. Even products made in the USA are still suffering from tariffs. For example, consider a mocha-flavored cold brew coffee sold in a typical c-store. While made in the US, it contains coffee that was tariffed, cocoa that was tariffed, a sweetener that was likely tariffed, and is packaged in an aluminum can that was tariffed. All of those costs would need to be tracked and reported. You can imagine how the cost of that compliance burden would be passed on. You can read our full testimony for more details HERE.
Another bill would require that any business which accepts digital coupons must start offering “rainchecks” for consumers if they run out of supply of the item in sale. Current law covering rainchecks only applies if a business has chosen to offer them, but the way this bill was drafted it forces most retail businesses to start offering them.
Another red tape creating bill on the agenda would require that all price signs offering something at a special Buy One, Get One price would also need to list the usual and customary price of the item.
For both those bills, violating the law would be violating the Consumer Fraud Act, which has penalties of up to $10,000 for a first offense.
A fourth bill on the agenda would require many food retail businesses to put up a special sign next to products that contain a high caffeine content, including coffee.