Senate Commerce Committee advances bill to clarify retailer fuel‑reward programs

Senate Bill 468, authored by Senator Seba, was advanced by the Senate Commerce Committee after the sponsor and retail industry witnesses told members the measure would clarify that in‑store loyalty and reward point discounts honored at the pump do not violate the state’s unfair sales statute.

Seba told the panel the bill amends the definition in Title 51 4 22.1 to make explicit that retailer loyalty programs that reduce a customer’s price at a designated retailer are not unlawful so long as the existing prohibition on selling below cost "with the intent or effect to impair or injure competition" remains enforceable. "This is something a lot of people do already," Seba said, adding he brought the measure at Brookshire’s request and is willing to consider a floor cap amendment to address concerns about excessive advertised savings.

Jessica Elliott, executive director of the Louisiana Retailers Association, testified in support and said the bill leaves in place the state’s below‑cost sales protections while permitting discounts earned through merchant loyalty programs that help consumers save at the pump. "It simply makes clear that discounts on gas earned through loyalty or rewards programs can be honored in Louisiana for Louisiana consumers without running afoul of existing pricing laws," Elliott said.

Committee members asked whether the change would allow extreme discounts and expressed concern about smaller independent marketers. Seba said the statute’s enforcement provisions remain intact and that he would consider a cap amendment on the floor. After brief discussion the committee agreed to report SB 468 favorably to the full Senate.