Partial Repeal of Minimum Markup Law Introduced
[Madison, Wisc…] On Tuesday, Sens. Vukmir and Craig and Reps. Ott and Murphy introduced a bill to repeal portions of Wisconsin’s antiquated Unfair Sales Act. Also known as the minimum markup law, the Unfair Sales Act mandates higher prices and outlaws the sale of retail goods at below cost.
The minimum markup law requires that alcohol, tobacco, and motor fuel are marked up 3 percent at the wholesale level, 6 percent at the retail level for alcohol and tobacco, and 9.18 percent at the retail level for motor fuel. It also forbids retailers from selling most other products below cost.
The Unfair Sales Act is a depression era relic of big government protecting the profits of businesses by limiting competition. The whole thing should be tossed into the dust bin. This is not the first time a bill to repeal some or all of it has been introduced and every attempt has failed. Why? Because there are a lot of Wisconsin businesses who like the law because it guarantees them a minimum level of profit and prevents their competitors from beating them on price. Who loses? Consumers who pay unnecessarily inflated prices.
This time it looks like Vukmir and Ott have limited the repeal to only cover alcohol, tobacco, and fuel. I assume this is an attempt to reduce the amount of opposition to the bill from the retail business lobby. Unfortunately, I don’t think it will work. Those same lobbyists will fight this bill because it would open up a crack in the law that could be expanded in subsequent sessions.
I completely support this bill and encourage my representatives to do the same.