Overturn of sales law is sought
11:27 PM 10/21/03
Ken Singletary Assistant business editor

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. <

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. <

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. <

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." <

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. <

The commission said Wisconsin has one of the highest gas mark-ups in the country. <

Putnam said polls show residents don't support the law, and when told about it, "People just don't believe the law exists." <

An effort to repeal the act in 2001 was not successful. <