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House repeals outdated below-cost sales restriction, despite opposition citing bait-and-switch concerns
Summary
The House passed House Bill 412, removing a statutory prohibition on retailers selling products below cost. Opponents warned it could enable bait‑and‑switch practices; supporters called the provision antiquated and harmful to local consumers. Vote: 63–8.
The Utah House passed House Bill 412, which removes a statutory provision that prohibits retailers from selling merchandise below cost, by a vote of 63–8. Sponsor Representative Steven Urquhart said the law is antiquated and places Utah retailers at a competitive disadvantage compared with national pricing and internet sales.
Representative Steven Urquhart told the chamber the measure removes an old restriction and should let merchants set prices in a competitive market. Representative Hansen rose in opposition, reading a paragraph of the current code and asserting the provision was originally enacted to prevent "bait and switch" practices that unfairly divert trade and harm competitors. Hansen said repealing the provision would eliminate a tool that historically protected fair competition.
Representative Bergford (speaking for the sponsor) replied that bait-and-switch protections exist elsewhere in the code and that the purpose of HB412 is to allow competitive pricing and prevent situations where customers shopping national sales are penalized by state pricing rules. The sponsor clarified the bill does not apply to gasoline, which is covered by a separate section of the code.
The Speaker announced the bill passed 63 yes to 8 no and will be referred to the Senate for further consideration.
