2002 Regular Session
To: Business and Financial Institutions
By: Senator(s) Burton
AN ACT TO ENACT THE RETAILERS' RIGHT TO CONTRACT ACT; TO ENACT DEFINITIONS; TO ENACT REQUIREMENTS FOR CIGARETTE RETAILER'S CONTRACTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) A cigarette retailer and manufacturer shall have the right to enter into contracts or agreements with each other for the retailer to:
(a) Obtain, participate in and receive payments from the manufacturer pursuant to the manufacturer's cigarette merchandising, advertising, display or promotion programs, whether permanent or temporary;
(b) Be compensated by the manufacturer for providing space for the merchandising, advertising, display or promotion of the manufacturer's products; and
(c) Purchase cigarettes.
(2) A contract or agreement described in subsection (1) shall not directly or indirectly require the retailer to allocate:
(a) A percentage or fraction of all or any part of the retailer's:
(i) Space available for product display, signage or advertising; or
(ii) Cigarette category space, to a manufacturer for any purpose; or
(b) A determined amount of such space, whether expressed in footage, product facings or other forms of stated measurement, to a manufacturer in order to receive, participate in, or receive payment under, a manufacturer's promotions.
(3) A contract or agreement described in subsection (1) shall not directly or indirectly restrict or limit:
(a) A retailer's cigarette category space; or
(b) A retailer's conduct of or participation in any program or activity concerning the sale, display, merchandising, promotion, pricing or advertising, in any manner, of any manufacturer's products.
(4) As used in this section:
(a) "Manufacturer" means a cigarette manufacturer or importer, directly or through its agent, representative, broker or any other person or entity, who directly or indirectly offers to supply, sell or deliver cigarettes or cigarette advertising, merchandising or promotions to a cigarette retailer.
(b) "Cigarette category space" means such portion of space in a store or on the premises as reserved, made available or identified by a retailer for the display of products, signs, advertising, promotion or other communications relating to cigarettes.
(c) "Promotion" means any program or means by which:
(i) The effective price paid by a purchaser of cigarettes is reduced from the regular price charged by the retailer when a manufacturer's promotion is not in effect or applicable; or
(ii) Additional cigarettes or other items are offered to the consumer in connection with the purchase of cigarettes.
(d) "Cigarette retailer" means every person, other than a wholesale dealer, whose principal business is that of selling merchandise at retail, who shall sell, or offer for sale tobacco to the consumer. The sale of tobacco in quantity lots by retailers to other retailers, transient vendors, or other persons, shall not be construed as wholesale and shall not qualify such retailer for a permit as a wholesaler.
SECTION 2. This act shall take effect and be in force from and after July 1, 2002.