Rebates equal instant cash bill moves to sen

By CMTA Staff

Capitol Update, June 8, 2007 Share this on FacebookTweet thisEmail this to a friend

AB 1673 (Mike Feuer, D-Los Angeles) would mandate that certain manufacturers' rebates be treated as on-the-spot cash reductions for products, rather than the traditional system which offers a consumer a price reduction in exchange for meeting some reasonable conditions offered by a manufacturer - the very premise of manufacturers offering rebates.

Specifically, the bill requires a California retail seller that indicates the availability of a rebate for an item of merchandise by displaying or advertising the net price, to offer that price immediately at the point of purchase.

The bill originally imposed civil penalties up to $10,000 for a first violation and up to $20,000 for a second or subsequent violation, unless it was proven by a preponderance of evidence that the violation was unintentional. However, it was amended on the Assembly Floor to reduce the civil penalties to no more than $2,500 per violation.

AB 1673 was approved by the full Assembly with only one vote to spare, moving to the State Senate on a 42 to 31 vote.  Three Republicans supported the bill.

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