HOUSE BILL No. 4037

 

 

January 28, 2003, Introduced by Rep. DeRoche and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1976 PA 449, entitled                                             

                                                                                

    "An act to regulate the pricing of consumer items and the                   

    advertising of consumer items, services, goods, merchandise,                

    commodities, and real property; to prescribe the powers and                 

    duties of certain state and local officials in relation thereto;            

    to provide remedies and penalties; and to repeal certain acts and           

    parts of acts,"                                                             

                                                                                

    by amending section 3 (MCL 445.353) and by adding sections 3a               

                                                                                

    and 3b.                                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1)  The  A person shall clearly and conspicuously                 

                                                                                

2   indicate the total price of a consumer item displayed or offered            

                                                                                

3   for sale at retail  shall be clearly and conspicuously indicated            

                                                                                

4   in  arabic  Arabic numerals.  , so as to  The total price must be           

                                                                                

5   readable and understandable by visual inspection  ,  and  shall             

                                                                                

6   be  stamped upon or affixed to the consumer item.  If the                   

                                                                                

7   consumer item is in a package or container, the total price                 

                                                                                

8   shall  must be stamped upon or affixed to the outside surface of           


                                                                                

1   the package or container and need not be placed directly upon the           

                                                                                

2   consumer item.                                                              

                                                                                

3       (2)  The requirements of subsection  Subsection (1)  shall                  

                                                                                

4   does not apply to:                                                          

                                                                                

5       (a) A consumer item sold by weight or volume  which  that is                

                                                                                

6   not in a package or container.                                              

                                                                                

7       (b) A consumer item sold in a coin operated vending machine.                

                                                                                

8       (c) Prepared food intended for immediate consumption, as                    

                                                                                

9   defined in section 4g of  Act No. 167 of the Public Acts of 1933,           

                                                                                

10  being section 205.54g of the Michigan Compiled Laws  the general            

                                                                                

11  sales tax act, 1933 PA 167, MCL 205.54g.                                    

                                                                                

12      (d) A consumer item purchased by mail or through catalog                    

                                                                                

13  order, or  which  that is not otherwise visible for inspection by           

                                                                                

14  the consumer at the time of the sale, and  which  that is ordered           

                                                                                

15  or requested by the consumer, if the price of the consumer item             

                                                                                

16  is on the consumer's written order or request or on a bill,                 

                                                                                

17  invoice, or other notice  which  that describes or names the                

                                                                                

18  consumer item and  which  is enclosed with the consumer item.               

                                                                                

19      (e) An unpackaged food item.                                                

                                                                                

20      (f) A consumer item  which  that has a total weight of not                  

                                                                                

21  more than 3 ounces, a total volume of not more than 3 cubic                 

                                                                                

22  inches,  and  or a total price of not more than 30 cents.                   

                                                                                

23      (g) Live plants.                                                            

                                                                                

24      (h) Live animals.                                                           

                                                                                

25      (i) Motor vehicles.                                                         

                                                                                

26      (j) Motor vehicle parts.                                                    

                                                                                

27      (k) Packages of 20 or fewer cigarettes.                                     


                                                                                

1                                                                                (l) Greeting cards sold individually  which  that have a                            

                                                                                

2   readable coded price on the back of the card.                               

                                                                                

3       (m) Merchandise ordered as a gift by a consumer  which  that                

                                                                                

4   is sent by mail or other delivery service to a person other than            

                                                                                

5   the consumer by the retailer at the request of the consumer.                

                                                                                

6       (n) A consumer item sold in compliance with section 3a.                     

                                                                                

7       (3) In addition to the  exemptions allowed in  exceptions                   

                                                                                

8   under subsection (2), a retailer may choose to not individually             

                                                                                

9   price mark not more than 25 classes of items or individual items,           

                                                                                

10  which classes or items shall be listed and posted in a                      

                                                                                

11  conspicuous place in the retail store, and may choose to not                

                                                                                

12  individually price mark not more than 25 additional classes of              

                                                                                

13  items or individual items  which  that are advertised or featured           

                                                                                

14  at a reduced price.                                                         

                                                                                

15      (4)  The  If the price and the name or description of a class               

                                                                                

16  of items or individual items are not price marked pursuant to               

                                                                                

17  subsection (3),  shall be indicated  the retailer shall indicate            

                                                                                

18  the price and the name or description of the class of items or              

                                                                                

19  individual items by posting a clear, readable, and conspicuous              

                                                                                

20  sign in immediate conjunction with the area in which the unmarked           

                                                                                

21  item or class of items is displayed.                                        

                                                                                

22      (5) As used in subsections (3) and (4), "item", except as                   

                                                                                

23  otherwise provided in this subsection, means 1 or more identical            

                                                                                

24  articles  ,  sold in identical quantities or measures.  An item             

                                                                                

25  may include more than 1 product, brand, kind, size, or type of              

                                                                                

26  packaging, if they are packaged together and sold as a set and              

                                                                                

27  the sets are identical in all respects, including quantity or               


                                                                                

1   measure.                                                                    

                                                                                

2       Sec. 3a.  (1) Section 3(1) does not apply to a consumer item                

                                                                                

3   displayed or offered for sale at retail that meets all of the               

                                                                                

4   following requirements:                                                     

                                                                                

5       (a) The consumer item is not a food item or nonprescription                 

                                                                                

6   medicine.                                                                   

                                                                                

7       (b) At the point of display of the consumer item, there is a                

                                                                                

8   label or sign posted immediately above, below, or adjacent to the           

                                                                                

9   consumer item that clearly and conspicuously displays to the                

                                                                                

10  consumer the total price of the consumer item in arabic numerals            

                                                                                

11  and a description of the consumer item, including, but not                  

                                                                                

12  limited to, the product name or description, brand, and size of             

                                                                                

13  the item.                                                                   

                                                                                

14      (c) The retailer utilizes an automatic checkout system at the               

                                                                                

15  retail store that is audited at least every calendar quarter by             

                                                                                

16  an independent certified public accountant or accounting firm,              

                                                                                

17  and the accountant or firm certifies, and issues a certificate of           

                                                                                

18  compliance, that the automatic checkout system meets 1 of the               

                                                                                

19  following:                                                                  

                                                                                

20                                                                               (i) Demonstrates an accuracy rate of not less than 98%.                             

                                                                                

21      (ii) Has an error rate not greater than 2% for sales of                      

                                                                                

22  consumer items during the preceding calendar quarter.                       

                                                                                

23      (d) The retailer provides at least 1 remote UPC code scanner                

                                                                                

24  for each 5,000 square feet of retail floor space in each retail             

                                                                                

25  store location.  A remote UPC code scanner shall meet all of the            

                                                                                

26  following requirements:                                                     

                                                                                

27                                                                               (i) Is compatible with and synchronized with the UPC code                           


                                                                                

1   scanning capability of the retailer's automatic checkout system             

                                                                                

2   used at the point of sale.                                                  

                                                                                

3       (ii) Is readily accessible to consumers and located in a                     

                                                                                

4   convenient place within the retail store.                                   

                                                                                

5       (iii) Is able to print a paper sales confirmation report for                 

                                                                                

6   a consumer item scanned by a consumer that contains the total               

                                                                                

7   price of the consumer item in arabic numerals and a description             

                                                                                

8   of the consumer item, including, but not limited to, the product            

                                                                                

9   name or designation, brand, and size of the item.                           

                                                                                

10      (2) In determining an accuracy rate or error rate under                     

                                                                                

11  subsection (1)(b), the certified public accountant or accounting            

                                                                                

12  firm shall include overcharges to a consumer but not                        

                                                                                

13  undercharges.  The accountant or firm may use recognized sampling           

                                                                                

14  techniques in the quarterly audit.  A retailer shall maintain               

                                                                                

15  audit reports and certificates of compliance for 5 years and make           

                                                                                

16  them available to the director on request.  The retailer shall              

                                                                                

17  post the most recent certificate of compliance in a conspicuous             

                                                                                

18  location in the retail store.                                               

                                                                                

19      (3) If the retailer fails to meet the accuracy and                          

                                                                                

20  certification requirements of subsection (1) for a retail store,            

                                                                                

21  the retailer has 30 days in which to correct any system                     

                                                                                

22  deficiencies and to obtain a recertification from the certified             

                                                                                

23  public accountant or accounting firm.  If the retailer does not             

                                                                                

24  obtain a recertification within the 30-day period, this section             

                                                                                

25  does not apply to the consumer items at that retail store, and              

                                                                                

26  the retailer shall comply with section 3 with respect to the                

                                                                                

27  consumer items described in this section, and may not utilize the           


                                                                                

1   exception to section 3(1) contained in this section at that                 

                                                                                

2   retail store for a period of at least 180 days.                             

                                                                                

3       (4) The director is responsible for the implementation and                  

                                                                                

4   the administration of this section.  The department may                     

                                                                                

5   promulgate rules pursuant to the administrative procedures act of           

                                                                                

6   1969, 1969 PA 306, MCL 24.201 to 24.328, regarding audit and                

                                                                                

7   certification standards for automatic checkout systems and remote           

                                                                                

8   UPC code scanners.                                                          

                                                                                

9       Sec. 3b.  (1) A person shall not knowingly charge or attempt                

                                                                                

10  to charge for a consumer item a retail price exceeding the price            

                                                                                

11  displayed on a sign or contained in a price confirmation report             

                                                                                

12  for the item under section 3a.  It is not a violation of this act           

                                                                                

13  to charge for a consumer item a total price less than the price             

                                                                                

14  displayed on a sign or contained in a confirmation report under             

                                                                                

15  section 3a.                                                                 

                                                                                

16      (2) It is prima facie evidence of a violation of this section               

                                                                                

17  if a price charged or attempted to be charged as a result of                

                                                                                

18  electronic identification or calculation by an automatic checkout           

                                                                                

19  system exceeds the price displayed on a sign or contained in a              

                                                                                

20  confirmation report under section 3a.                                       

                                                                                

21      (3) Before bringing or joining an action under section 10(2),               

                                                                                

22  within 30 days after purchasing a consumer item that is not a               

                                                                                

23  food item or nonprescription medicine at a retail store that                

                                                                                

24  meets the accuracy and certification requirement of section 3a, a           

                                                                                

25  consumer who suffers a loss because the price charged for the               

                                                                                

26  consumer item is more than the displayed price for the item or              

                                                                                

27  the price set forth on the price confirmation report shall notify           


                                                                                

1   the retailer in person or in writing of the price discrepancy.              

                                                                                

2   If, within 2 days after the notification, the retailer tenders to           

                                                                                

3   the consumer an amount equal to the difference between the                  

                                                                                

4   displayed price or the price set forth on the price confirmation            

                                                                                

5   report and the price charged, plus an amount equal to 20 times              

                                                                                

6   that difference, but that is not less than $2.00 or more than               

                                                                                

7   $10.00, the consumer is barred from further recovery for that               

                                                                                

8   loss.  If the loss is suffered by 1 consumer within 1 transaction           

                                                                                

9   on 2 or more identical items, the retailer shall tender the                 

                                                                                

10  difference on each item, plus an amount equal to 20 times the               

                                                                                

11  difference on a single item but that is not less than $2.00 and             

                                                                                

12  not more than $10.00.  If the retailer does not tender this                 

                                                                                

13  amount, the consumer may bring or join in an action as provided             

                                                                                

14  in section 10(2).                                                           

                                                                                

15      (4) Subsection (3) does not apply to a sale at retail if the                

                                                                                

16  retailer intentionally charges more for an item than the posted             

                                                                                

17  price or the price set forth on the price confirmation report.