FTC embarks on new bid to change state below-cost laws

摘要

The Federal Trade Commission is encouraging New Jersey lawmakers to pass a bill that would allow retailers to set pump prices that are below their cost, provided they do so in order to match competition.rnBelow-cost pricing has been banned in New Jersey since 1938. The original measure was designed to stop major oil companies from putting smaller independents out of business. However, the cheapest street offerings now typically come from Big Box chains and "New Era" retailers who depend more on other categories to make a profit.rnA letter sent to Sen. Raymond Lesniak from the directors of the FTC's Bureau of Competition suggests that the bill "likely would encourage more aggressive price competition, which would benefit New Jersey consumers through lower gasoline prices."