A consumer group wants to overturn Wisconsin's Unfair Sales Act, in response to comments from the Federal Trade Commission that the law likely leads to high gasoline prices in the state.
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The Coalition for Lower Gas Prices is trying to mobilize members and legislators in an effort to repeal the law, said Roger Putnam, a spokesman. Companies and organizations behind the effort include Wal-Mart, the Wisconsin Builders Association, AAA Wisconsin and some state veterans groups, Putnam said.
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The law, which was enacted in 1939, mandates that gasoline retailers increase the price of gas by at least 6 percent above the wholesale price. Its intent is to prevent below-cost pricing, in which retailers sell below the wholesale price to drive competitors out of business. The law's supporters say it preserves competition and consumer choice.
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The FTC, in a response to a letter from Rep. Shirley Krug, D-Milwaukee, said the law "likely leads to significantly higher prices for consumers."
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It duplicates federal law against predatory pricing, the commission said. It also discourages competitive pricing, and scholarly studies and court decisions indicate that below-cost pricing rarely leads to monopolies, especially in the case of motor fuel, the FTC said.
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The commission said Wisconsin has one of the highest gas mark-ups in the country.
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Putnam said polls show residents don't support the law, and when told about it, "People just don't believe the law exists."
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An effort to repeal the act in 2001 was not successful.
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