§422.1. Unfair sales of motor fuel; impairment of competition; exemptions; records to support exemptions

A. The provisions of this Section shall govern retail sales of motor fuel to the exclusion of R.S. 51:422 and 426. For purposes of this Section, the terms set forth below shall have the following meanings:

(1) "Competition" means the vying for motor fuel sales between any sellers in the same relevant geographic market.

(2) "Cost" means the retailer's cost of acquiring the product.

(3) "Cost of acquiring the product" means the actual price paid for the product as reflected in the invoice or other sales documents or, in the case of a refiner, the cost of manufacturing the product and transporting the product to the relevant terminal facility.

(4) "Motor fuels" means gasoline and diesel fuel.

(5) "Terminal facility" means any inland, waterfront, or offshore appurtenance used for the purpose of storing, handling, or transferring motor fuel, but does not include bulk storage facilities owned and/or operated by a wholesaler.

B.(1) Notwithstanding any other provision of this Subpart, it is an unfair trade practice and unlawful for any person who is a retailer to sell, at retail, motor fuel at a price which is below the retailer's cost plus taxes, applicable fees, and transportation charges, when the intent or effect is to impair or injure competition.

(2) For purposes of this Section, rebates provided to customers that purchase motor fuels through the use of a credit, debit, or shopping card not issued by or affiliated with the retailer shall not be considered in determining whether the sale is below the retailer's cost.

C. The provisions of Subsection B shall not apply in any of the following situations:

(1) When motor fuel is sold upon the final liquidation of a business.

(2) When motor fuel is advertised, offered for sale, or sold by any fiduciary or other officer under the order or direction of any court.

(3) When motor fuel is sold for promotional purposes limited to a grand opening, an annual anniversary, or an annual customer appreciation day sale, each of which does not exceed three consecutive days.

(4) When motor fuel is sold in a good faith effort to meet the legal price of a competitor. No retailer shall be in violation of Paragraph (B)(1) of this Section if the retailer makes a bona fide effort to determine the legality of the price of a competitor and determines in good faith that the competitor's price is a legal price.

(5) When gasoline or diesel fuel of any grade or formula is sold or offered for sale at retail or wholesale for ultimate use in the operation of motor vehicles, generators, power tools, or small engines during a time period and in the specific geographic area in which R.S. 29:732 applies.

D. Any person who is in the retail business of selling motor fuel claiming any exemption from Subsection B pursuant to the exceptions provided for in Subsection C must keep and maintain records substantiating the claim for exemption.

E. Notwithstanding any other provision of law to the contrary, the provisions of this Section shall be enforced by the attorney general and the district attorneys, in their respective districts, in order to prevent and restrain violations of this Section.

Acts 2005, No. 263, §1, eff. June 29, 2005; Acts 2009, No. 494, §3.