01-015 C.M.R. ch. 20, § IV - WHEN BELOW-COST PRICE NOT PROHIBITED; BURDEN

A. When Below-Cost Price Not Prohibited. The offer for sale or sale of any regulated product or products as to which this chapter is in effect by a dealer or retail store at a price which is below the cost thereof to the dealer or retail store is not prohibited when done without the purpose or intent to injure competitors or destroy competition or when the price is set in good faith to meet legal competition.

B. Burden. A dealer or retail store which relies on subsection A. to explain or justify a price which is below its cost must provide information which demonstrates that its own price was not set with the purpose or intent to injure competitors or destroy competition, or that its own price was set in good faith to meet legal competition and that the dealer or retail store directly competes with that competition. Proof that a price was set by a competitor may be made by evidence such as an advertisement, proof of sale or receipt. Proof that a price was offered by a competitor may be made by evidence such as a written price proposal or contract to sell at that price.

C. Duration of Below-Cost Price to Meet Competition. A dealer or retail store which, under this section, is not prohibited from selling at a price which is below its cost may continue to sell at that price only so long as it is in fact doing so to meet the legal competition in response to which it set its price.

Notes

01-015 C.M.R. ch. 20, § IV