Retail fuel sales: price discounts.

The Unfair Practices Act prohibits certain unfair trade practices. Under the act, it is unlawful for any person engaged in business to sell or use any article or product as a loss leader. Existing law defines "loss leader" as any article or product sold at less than cost where the purpose is to induce, promote, or encourage the purchase of other merchandise, where the effect is a tendency or capacity to mislead or deceive purchasers or prospective purchasers, or where the effect is to divert trade from or otherwise injure competitors. This bill, for purposes of determining whether an article or product is a loss leader, would provide that a person or related person, as defined, selling automotive fuel at the retail level does not sell below cost if a fuel price discount, concession, or reduction is provided in connection with the purchase of other articles or products and the total price of the fuel and the other articles or products equals or exceeds the total cost of the fuel and the other articles or products. The bill would define various terms for these purposes.