Indiana House Continues to Push Anti-Consumer Price-Fixing Bill

The Following is a Statement from Steve Pociask, President and CEO for the American Consumer Institute:

“I am appalled and disappointed that Indiana House members continue to push HB 1109 — an antimarket and anti-consumer bill.

HB 1109 prevents beverage companies from market segmentation by requiring all retail stores be offered the same wholesale price, regardless of volume, distance, delivery method, breakage, and the price elasticity of demand. The negative consequence of this bill is that takes advantage of some consumers, particularly those with lower incomes.

By eliminating any differential in the wholesale price for nonalcoholic beverages, the bill, if enacted, would encourage consumers to shop in convenience stores that tend to have much higher prices on other goods – like bread, milk, baby formula, and many other products – thereby codifying a “deceptive” consumer practice in Indiana. It is totally reprehensible that some members would push legislation that promotes “bait and switch” tactics that lure consumers into high-priced convenience stores to buy lower priced nonalcoholic products in the hopes that they would, unfortunately, buy more expensive products at checkout.

I am amiss to understand why members would think that such a public policy has merit, considering that HB 1109 thwarts market competition and efficiency in favor of higher priced convenience store lobbyists. As consumers face rising national inflation, the timing of this price-fixing scheme could not have come at a worse time for Indiana consumers.”

FacebooktwitterredditlinkedinFacebooktwitterredditlinkedin