Governor rejects rebate mandate bill

By CMTA Staff

Capitol Update, Oct. 6, 2006 Share this on FacebookTweet thisEmail this to a friend

SB 1737 (Liz Figueroa, D-Sunol), which would have had the undesirable effect of reducing the number of rebates offered by California manufacturers, was vetoed by the Governor.

The bill was based on the false notion that rebates are entitlements and that asking consumers to meet some reasonable conditions in order to get a discount or benefit from a manufacturer was not appropriate. The Governor, acknowledging this misguided premise, argued in his veto message that "consumers benefit from rebate offers and choose whether or not to participate in them. Unnecessary restrictions on those offers in California could take that option away from them, if companies choose to no longer offer rebates to Californians."

CMTA appreciates the Governor's rejection of this proposal which would have significantly reduced the flexibility for manufacturers to offer rebates within California, and thereby harming consumers.

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