HB1024 amends Oklahoma’s Unfair Sales Act, which regulates sales below cost and other pricing practices that may be used to undercut competitors. The bill revises statutory definitions for “cost to the retailer,” “cost to the wholesaler,” and related terms, and it adds a specific definition of “unreasonably low profit margin.” It also clarifies how bundled items, gifts with purchase, retail sales, wholesale sales, retailers, and wholesalers are treated under the Act.
The new “unreasonably low profit margin” definition is aimed at pricing that is set above cost but still intended to eliminate competition, or that has the actual effect of doing so, within a reasonable geographic area. Section 598.3 is also updated to state that sales at less than cost or at an unreasonably low profit margin, when used to induce purchases of other merchandise or unfairly divert trade, are unfair competition and contrary to public policy. The act takes effect November 1, 2025.
Impact
The bill updates 15 O.S. 2021, Sections 598.2 and 598.3, expanding the Unfair Sales Act’s reach beyond traditional below-cost sales to include pricing practices involving unreasonably low profit margins. This affects retailers and wholesalers by giving regulators and courts a clearer statutory basis to evaluate pricing strategies, especially in competitive markets where predatory pricing or trade diversion is alleged. It also preserves the existing cost-calculation framework, including freight, cartage, and taxes, while refining how those costs are applied to gasoline and diesel fuel retailers.
Sentiment
The bill appears to have broad support and little visible opposition in the available record. It passed the House Business Committee 8-0, the House Commerce and Economic Development Oversight Committee 16-0, and the House on third reading 89-3. The unanimous committee votes suggest the measure was viewed as a technical or clarifying update, while the small number of dissenting floor votes indicates limited but present disagreement.
Contention
The main point of contention is likely the bill’s expansion of the Unfair Sales Act from sales below cost to sales at an “unreasonably low profit margin,” which could be seen as giving the state broader authority to challenge aggressive pricing. Supporters likely view this as a needed clarification to protect fair competition and prevent predatory pricing, while critics may worry it could chill discounting, promotions, or competitive pricing strategies. The bill also makes special reference to gasoline and diesel fuel retailers, which may be significant because fuel pricing is often highly competitive and closely watched.