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Competition?
November 25, 2006
Oklahoma is Anti-Capitalist!
Well, not really. Most Oklahomans pride themselves on being extremely anti-tax and pro-growth, true tenents of Capitalism. Something I read today, however, makes me question that ethic.
In 1949, Oklahoma passed a law regarding the prices that consumers pay for goods.
It’s called the Unfair Sales Act. The Act prohibits retailers from selling merchandise below cost, and, on top of that, requires AT LEAST a 6% markup. That means, if something costs $100 for the retailer to purchase, they must charge $106, plus, if it’s in Oklahoma City, the 8.375% sales tax.
This law really takes hold on days like Black Friday. I took this little blip from Kfor.com:
Randie Case of Wilson says she went to an Ardmore Wal-Mart store when she saw a 52-inch widescreen T-V advertised for 474 dollars. But in Oklahoma, the cost of that T-V is 699 dollars.Wal-Mart spokesman Bill Wertz says that even though a company’s national ad lists one price, companies still must comply with state law.
He says it’s unfortunate that state laws cause unevenness in prices for shoppers in states like Oklahoma.
How is that fair competition? If a retailer wants to undercut the competition to gain an edge, isn’t that ok? Wal Mart seems to have taken a strong hold in Oklahoma, even without selling below cost, so who is this law protecting?
What are your thoughts on this? I wonder how many other states have this law…
Posted by paul at November 25, 2006 09:08 AM
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