HOUSE BILL No. 5544


     December 21, 2001, Introduced by Reps. Bishop, Raczkowski, Julian, Hale, Thomas, Ruth Johnson, Daniels and McConico 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 adver-
   tising of consumer items, services, goods, merchandise, commodi-
   ties, 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 be  THE TOTAL PRICE
   MUST

 5
      BE readable and understandable by visual inspection  ,  and

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

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



   01462'01 **                                              DAM                                   2

 1
       shall  MUST be stamped upon or affixed to the outside surface of

 2
      the package or container and need not be placed directly upon the

 3
      consumer item.

 4
           (2)  The requirements of subsection  SUBSECTION (1) 
   shall

 5
      DOES not apply to:

 6
           (a) A consumer item sold by weight or volume  which  THAT is

 7
      not in a package or container.

 8
           (b) A consumer item sold in a coin operated vending

 9
      machine.

10
           (c) Prepared food intended for immediate consumption, as

11
      defined in section 4g of  Act No. 167 of the Public Acts of 1933,

12
      being section 205.54g of the Michigan Compiled Laws  THE GENERAL

13
      SALES TAX ACT, 1933 PA 167, MCL 205.54G.

14
           (d) A consumer item purchased by mail or through catalog

15
      order, or  which  THAT is not otherwise visible for inspection by

16
      the consumer at the time of the sale, and  which  THAT is ordered

17
      or requested by the consumer, if the price of the CONSUMER item

18
      is on the consumer's written order or request or on a bill,

19
      invoice, or other notice  which  THAT describes or names the

20
      CONSUMER item and  which  is enclosed with the CONSUMER item.

21
           (e) An unpackaged food item.

22
           (f) A consumer item  which  THAT has a total weight of not

23
      more than 3 ounces, a total volume of not more than 3 cubic

24
      inches,  and  OR a total price of not more than 30 cents.

25
           (g) Live plants.

26
           (h) Live animals.





   01462'01 **                                   3

 1
           (i) Motor vehicles.

 2
           (j) Motor vehicle parts.

 3
           (k) Packages of 20 or fewer cigarettes.

 4
           (l) Greeting cards sold individually  which  THAT have a

 5
      readable coded price on the back of the card.

 6
           (m) Merchandise ordered as a gift by a consumer  which  THAT

 7
      is sent by mail or other delivery service to a person other than

 8
      the consumer by the retailer at the request of the consumer.

 9
           (N) A CONSUMER ITEM SOLD IN COMPLIANCE WITH SECTION 3A.

10
           (3) In addition to the  exemptions allowed in  EXCEPTIONS

11
      UNDER subsection (2), a retailer may choose to not individually

12
      price mark not more than 25 classes of items or individual items,

13
      which classes or items shall be listed and posted in a conspicu-

14
      ous place in the retail store, and may choose to not individually

15
      price mark not more than 25 additional classes of items or indi-

16
      vidual items  which  THAT are advertised or featured at a reduced

17
      price.

18
           (4)  The  IF THE price and the name or description of a

19
      class of items or individual items ARE not PRICE marked pursuant

20
      to subsection (3),  shall be indicated  THE RETAILER SHALL INDI-

21
      CATE THE PRICE AND THE NAME OR DESCRIPTION OF THE CLASS OF ITEMS

22
      OR INDIVIDUAL ITEMS by POSTING a clear, readable, and conspicuous

23
      sign in immediate conjunction with the area in which the unmarked

24
      item or class of items is displayed.

25
           (5) As used in subsections (3) and (4), "item", except as

26
      otherwise provided in this subsection, means 1 or more identical

27
      articles  ,  sold in identical quantities or measures.  An item



   01462'01 **                                   4

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

 2
      packaging, if they are packaged together and sold as a set and

 3
      the sets are identical in all respects, including quantity or

 4
      measure.

 5
           SEC. 3A.  (1) SECTION 3(1) DOES NOT APPLY TO A CONSUMER ITEM

 6
      DISPLAYED OR OFFERED FOR SALE AT RETAIL THAT MEETS ALL OF THE

 7
      FOLLOWING REQUIREMENTS:

 8
           (A) THE CONSUMER ITEM IS NOT A FOOD ITEM OR NONPRESCRIPTION

 9
      MEDICINE.

10
           (B) AT THE POINT OF DISPLAY OF THE CONSUMER ITEM, THERE IS A

11
      LABEL OR SIGN POSTED IMMEDIATELY ABOVE, BELOW, OR ADJACENT TO THE

12
      CONSUMER ITEM THAT CLEARLY AND CONSPICUOUSLY DISPLAYS TO THE CON-

13
      SUMER THE TOTAL PRICE OF THE CONSUMER ITEM IN ARABIC NUMERALS AND

14
      A DESCRIPTION OF THE CONSUMER ITEM, INCLUDING, BUT NOT LIMITED

15
      TO, THE PRODUCT NAME OR DESCRIPTION, BRAND, AND SIZE OF THE

16
      ITEM.

17
           (C) THE RETAILER UTILIZES AN AUTOMATIC CHECKOUT SYSTEM AT

18
      THE RETAIL STORE THAT IS AUDITED AT LEAST EVERY CALENDAR QUARTER

19
      BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT OR ACCOUNTING FIRM,

20
      AND THE ACCOUNTANT OR FIRM CERTIFIES, AND ISSUES A CERTIFICATE OF

21
      COMPLIANCE, THAT THE AUTOMATIC CHECKOUT SYSTEM MEETS 1 OF THE

22
      FOLLOWING:

23
           (i) DEMONSTRATES AN ACCURACY RATE OF NOT LESS THAN 98%.

24
           (ii) HAS AN ERROR RATE NOT GREATER THAN 2% FOR SALES OF CON-

25
      SUMER ITEMS DURING THE PRECEDING CALENDAR QUARTER.

26
           (D) THE RETAILER PROVIDES AT LEAST 1 REMOTE UPC CODE SCANNER

27
      FOR EACH 5,000 SQUARE FEET OF RETAIL FLOOR SPACE IN EACH RETAIL



   01462'01 **                                   5

 1
      STORE LOCATION.  A REMOTE UPC CODE SCANNER SHALL MEET ALL OF THE

 2
      FOLLOWING REQUIREMENTS:

 3
           (i) IS COMPATIBLE WITH AND SYNCHRONIZED WITH THE UPC CODE

 4
      SCANNING CAPABILITY OF THE RETAILER'S AUTOMATIC CHECKOUT SYSTEM

 5
      USED AT THE POINT OF SALE.

 6
           (ii) IS READILY ACCESSIBLE TO CONSUMERS AND LOCATED IN A

 7
      CONVENIENT PLACE WITHIN THE RETAIL STORE.

 8
           (iii) IS ABLE TO PRINT A PAPER SALES CONFIRMATION REPORT FOR

 9
      A CONSUMER ITEM SCANNED BY A CONSUMER THAT CONTAINS THE TOTAL

10
      PRICE OF THE CONSUMER ITEM IN ARABIC NUMERALS AND A DESCRIPTION

11
      OF THE CONSUMER ITEM, INCLUDING, BUT NOT LIMITED TO, THE PRODUCT

12
      NAME OR DESIGNATION, BRAND, AND SIZE OF THE ITEM.

13
           (2) IN DETERMINING AN ACCURACY RATE OR ERROR RATE UNDER

14
      SUBSECTION (1)(B), THE CERTIFIED PUBLIC ACCOUNTANT OR ACCOUNTING

15
      FIRM SHALL INCLUDE OVERCHARGES TO A CONSUMER BUT NOT

16
      UNDERCHARGES.  THE ACCOUNTANT OR FIRM MAY USE RECOGNIZED SAMPLING

17
      TECHNIQUES IN THE QUARTERLY AUDIT.  A RETAILER SHALL MAINTAIN

18
      AUDIT REPORTS AND CERTIFICATES OF COMPLIANCE FOR 5 YEARS AND MAKE

19
      THEM AVAILABLE TO THE DIRECTOR ON REQUEST.  THE RETAILER SHALL

20
      POST THE MOST RECENT CERTIFICATE OF COMPLIANCE IN A CONSPICUOUS

21
      LOCATION IN THE RETAIL STORE.

22
           (3) IF THE RETAILER FAILS TO MEET THE ACCURACY AND CERTIFI-

23
      CATION REQUIREMENTS OF SUBSECTION (1) FOR A RETAIL STORE, THE

24
      RETAILER HAS 30 DAYS IN WHICH TO CORRECT ANY SYSTEM DEFICIENCIES

25
      AND TO OBTAIN A RECERTIFICATION FROM THE CERTIFIED PUBLIC ACCOUN-

26
      TANT OR ACCOUNTING FIRM.  IF THE RETAILER DOES NOT OBTAIN A

27
      RECERTIFICATION WITHIN THE 30-DAY PERIOD, THIS SECTION DOES NOT



   01462'01 **                                   6

 1
      APPLY TO THE CONSUMER ITEMS AT THAT RETAIL STORE, AND THE

 2
      RETAILER SHALL COMPLY WITH SECTION 3 WITH RESPECT TO THE CONSUMER

 3
      ITEMS DESCRIBED IN THIS SECTION, AND MAY NOT UTILIZE THE EXCEP-

 4
      TION TO SECTION 3(1) CONTAINED IN THIS SECTION AT THAT RETAIL

 5
      STORE FOR A PERIOD OF AT LEAST 180 DAYS.

 6
           (4) THE DIRECTOR IS RESPONSIBLE FOR THE IMPLEMENTATION AND

 7
      THE ADMINISTRATION OF THIS SECTION.  THE DEPARTMENT MAY PROMUL-

 8
      GATE RULES PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT OF 1969,

 9
      1969 PA 306, MCL 24.201 TO 24.328, REGARDING AUDIT AND CERTIFICA-

10
      TION STANDARDS FOR AUTOMATIC CHECKOUT SYSTEMS AND REMOTE UPC CODE

11
      SCANNERS.

12
           SEC. 3B.  (1) A PERSON SHALL NOT KNOWINGLY CHARGE OR ATTEMPT

13
      TO CHARGE FOR A CONSUMER ITEM A RETAIL PRICE EXCEEDING THE PRICE

14
      DISPLAYED ON A SIGN OR CONTAINED IN A PRICE CONFIRMATION REPORT

15
      FOR THE ITEM UNDER SECTION 3A.  IT IS NOT A VIOLATION OF THIS ACT

16
      TO CHARGE FOR A CONSUMER ITEM A TOTAL PRICE LESS THAN THE PRICE

17
      DISPLAYED ON A SIGN OR CONTAINED IN A CONFIRMATION REPORT UNDER

18
      SECTION 3A.

19
           (2) IT IS PRIMA FACIE EVIDENCE OF A VIOLATION OF THIS SEC-

20
      TION IF A PRICE CHARGED OR ATTEMPTED TO BE CHARGED AS A RESULT OF

21
      ELECTRONIC IDENTIFICATION OR CALCULATION BY AN AUTOMATIC CHECKOUT

22
      SYSTEM EXCEEDS THE PRICE DISPLAYED ON A SIGN OR CONTAINED IN A

23
      CONFIRMATION REPORT UNDER SECTION 3A.

24
           (3) BEFORE BRINGING OR JOINING AN ACTION UNDER

25
      SECTION 10(2), WITHIN 30 DAYS AFTER PURCHASING A CONSUMER ITEM

26
      THAT IS NOT A FOOD ITEM OR NONPRESCRIPTION MEDICINE AT A RETAIL

27
      STORE THAT MEETS THE ACCURACY AND CERTIFICATION REQUIREMENT OF



   01462'01 **                                   7

 1
      SECTION 3A, A CONSUMER WHO SUFFERS A LOSS BECAUSE THE PRICE

 2
      CHARGED FOR THE CONSUMER ITEM IS MORE THAN THE DISPLAYED PRICE

 3
      FOR THE ITEM OR THE PRICE SET FORTH ON THE PRICE CONFIRMATION

 4
      REPORT SHALL NOTIFY THE RETAILER IN PERSON OR IN WRITING OF THE

 5
      PRICE DISCREPANCY.  IF, WITHIN 2 DAYS AFTER THE NOTIFICATION, THE

 6
      RETAILER TENDERS TO THE CONSUMER AN AMOUNT EQUAL TO THE DIFFER-

 7
      ENCE BETWEEN THE DISPLAYED PRICE OR THE PRICE SET FORTH ON THE

 8
      PRICE CONFIRMATION REPORT AND THE PRICE CHARGED, PLUS AN AMOUNT

 9
      EQUAL TO 20 TIMES THAT DIFFERENCE, BUT THAT IS NOT LESS THAN

10
      $2.00 OR MORE THAN $10.00, THE CONSUMER IS BARRED FROM FURTHER

11
      RECOVERY FOR THAT LOSS.  IF THE LOSS IS SUFFERED BY 1 CONSUMER

12
      WITHIN 1 TRANSACTION ON 2 OR MORE IDENTICAL ITEMS, THE RETAILER

13
      SHALL TENDER THE DIFFERENCE ON EACH ITEM, PLUS AN AMOUNT EQUAL TO

14
      20 TIMES THE DIFFERENCE ON A SINGLE ITEM BUT THAT IS NOT LESS

15
      THAN $2.00 AND NOT MORE THAN $10.00.  IF THE RETAILER DOES NOT

16
      TENDER THIS AMOUNT, THE CONSUMER MAY BRING OR JOIN IN AN ACTION

17
      AS PROVIDED IN SECTION 10(2).

18
           (4) SUBSECTION (3) DOES NOT APPLY TO A SALE AT RETAIL IF THE

19
      RETAILER INTENTIONALLY CHARGES MORE FOR AN ITEM THAN THE POSTED

20
      PRICE OR THE PRICE SET FORTH ON THE PRICE CONFIRMATION REPORT.

















   01462'01 **          Final page.                         DAM