State below-cost motor fuel selling laws and minimum-markup percentages
A handful of states make it illegal for a gas station to sell fuel below its own cost, on the theory that a chain with deep pockets could otherwise sell at a loss long enough to drive independent competitors out and then raise prices. Two separate things have to be known before anyone can act on one of these laws, and they almost always live in two different statute sections: what conduct is actually prohibited (and what the exceptions are), and how the law says 'cost' is calculated. So each state gets a record for each. Only two of the states here bolt a fixed cost-of-doing-business markup percentage onto cost -- Wisconsin (6% retail, 3% wholesale, 9.18% on the average posted terminal price) and West Virginia (4% wholesale) -- which is why the popular name 'minimum markup law' is misleading everywhere else: Minnesota, Missouri, North Carolina and Florida set a cost floor with no fixed percentage on top. No comprehensive compiled version of these laws was found; each state's rule lives only in its own statute or agency guidance page. Answers 'can a gas station legally sell below cost in my state', 'what's the minimum markup percentage for gasoline in Wisconsin', 'what counts as cost for a gas station in Florida', 'is meeting a competitor's price an exception'.
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LicenceUS state statutes and agency guidance; facts not copyrightable, quoted with citation.
The data
| State | Applies to | Rule | Law name | Statute citation | How "cost" is defined | Fixed markup percentage | What is prohibited | Exceptions |
|---|---|---|---|---|---|---|---|---|
| North Carolina | retail (all other sellers) | cost floor | Definitions. | G.S. 75-81 | For all other sellers, cost includes the invoice or replacement cost, whichever is less, of the grade, brand or blend, of motor fuel within 10 days prior to the date of sale, in the quantity or quantities last purchased, less all rebates and discounts received including prompt payment discounts and plus all applicable State, federal and local taxes, and transportation expenses including freight expenses, incurred and not otherwise included in the cost of the motor fuel. | |||
| Missouri | retail and wholesale | cost floor | Definitions. | 416.605 | (a) a. If the motor fuel is not purchased from an affiliate, the lowest invoice cost that the seller charged to the purchaser for motor fuel of like grade and quality within three days prior to the date of any alleged unlawful resale by the purchaser, less trade discounts, allowances or rebates which the purchaser receives on the particular invoice or transfer; or b. If motor fuel is purchased or received from an affiliate, the lowest transfer price that the affiliate charged to the purchaser or receiver for motor fuel of like grade and quality within three days prior to the date of any alleged unlawful resale by the purchaser or receiver, less trade discounts, allowances, or rebates which the purchaser receives on the particular invoice or transfer; plus (b) The cost of doing business; plus (c) Freight charges and all applicable federal, state and local taxes not already included in the invoice cost or transfer price; | |||
| Minnesota | retail | cost floor | DEFINITIONS | 325D.01 | (i) the average terminal price on the day, at the terminal from which the most recent supply of gasoline delivered to the retail location was acquired, plus all applicable state and federal excise taxes and fees; or (ii) the actual current delivered invoice or replacement cost of the gasoline, whichever is lower, plus all applicable state and federal excise taxes and fees. | |||
| Florida | retail (nonrefiner) | cost floor | Definitions. | F.S. 526.303 | the nonrefiner’s invoice cost of the motor fuel, by grade, less credit card allowances, trade discounts, and rebates actually received, to which shall be added federal, state, and local taxes and inspection fees applicable to motor fuel; freight charges to the retail outlet; and direct labor costs and the reasonable rental value of the retail outlet attributable to the sale of motor fuel by the nonrefiner. | |||
| Florida | retail (refiner) | cost floor | Definitions. | F.S. 526.303 | a refiner’s posted terminal price plus state, federal, and local taxes and inspection fees applicable to motor fuel, and freight charges to its retail outlet, and direct labor costs and reasonable rental value of the retail outlet attributable to the retail sale of motor fuel by the refiner. | |||
| North Carolina | retail (refiner or terminal supplier) | cost floor | Definitions. | G.S. 75-81 | For a refiner or terminal supplier, costs shall be presumed to be the refiner's or terminal supplier's prevailing price to the wholesale class of trade at the terminal used by the refiner or terminal supplier to obtain the motor fuel in question or the lowest prevailing price within 10 days prior to a sale alleged to be in violation of G.S. 75-82 hereof plus all transportation expenses including freight expenses (incurred and not otherwise included in the cost of the motor fuel), and motor fuel taxes. | |||
| West Virginia | retail | cost floor | How cost determined. | §47-11A-6 | (i) The invoice cost of each separate or distinct product or item of merchandise to the retailer to include applicable taxes, or the replacement cost thereof to the retailer within 30 days prior to the date of sale, offer for sale, or advertisement for sale, as the case may be, in the quantity last purchased, whichever is lower, from either of which there shall be deducted all trade discounts, except customary discounts for cash; and (ii) to either of which there shall be added freight charges not otherwise included in the cost of the article, product, or item of merchandise, but which freight charges shall not be construed as including cartage to retail outlet if done or paid for by the retailer. | |||
| Wisconsin | retail | cost floor | Unfair Sales Act | Wis. Stat § 100.30 | the greater of either invoice or replacement cost (as noted above) plus a cost of doing business markup of 6%, or the “average posted terminal price” plus a cost of doing business markup of 9.18%. | 6% | ||
| Minnesota | wholesale | cost floor | DEFINITIONS | 325D.01 | the actual current delivered invoice or replacement cost, whichever is lower, without deducting customary cash discounts, plus any excise or sales taxes imposed on such commodity, goods, wares or merchandise subsequent to the purchase thereof and prior to the resale thereof, plus the cost of doing business at that location by the vendor; | |||
| West Virginia | wholesale | cost floor | How cost determined. | §47-11A-6 | (2) A markup to cover, in part, the cost of doing business, which markup in the absence of proof of a lesser cost, shall be four percent of the aggregate of invoice cost or replacement cost (whichever is used), less trade discounts as aforesaid, and plus said freight charges: Provided, That such a markup to cover the cost of doing business as provided for in this subdivision shall be exclusive of any federal and state motor fuel taxes. | four percent | ||
| Wisconsin | wholesale | cost floor | Unfair Sales Act | Wis. Stat § 100.30 | The statutory definition of cost for wholesale sales of motor vehicle fuel includes a cost-of-doing-business markup of 3%. | 3% | ||
| Missouri | retail and wholesale | prohibition | Sale below cost or at lower price, prohibited when. | 416.615 | It is unlawful for any person engaged in commerce within this state to sell or offer to sell motor fuel below cost | |||
| West Virginia | retail and wholesale | prohibition | When selling below cost prohibited; penalty. | §47-11A-2 | it shall be unlawful for any person, partnership, firm, corporation, or other entity engaged in business as a retailer or wholesaler within this state to sell, offer for sale, or advertise for sale any product or item of merchandise at a price less than the cost thereof with the intent to destroy or the effect of destroying competition. | |||
| Wisconsin | retail and wholesale | prohibition | Unfair Sales Act | Wis. Stat § 100.30 | the Unfair Sales Act prohibits selling items of merchandise below cost | Meeting the existing price of a direct competitor Clearance and final liquidation sales Sales of damaged or perishable merchandise Contracted sales to government institutions Sales for charitable purposes or to relief agencies | ||
| Minnesota | retail | prohibition | UNLAWFUL GASOLINE SALES | 325D.71 | Any offer for sale of gasoline by a retailer by way of posted price or indicating meter that is below cost | A retailer who sells gasoline at the same or higher legally posted price of a competitor in the same market area, on the same day, is not in violation of this section. (b) A retailer who offers gasoline for sale at a price below cost as part of a promotion at an individual location for no more than three days in any calendar quarter is not in violation of this section. (c) A retailer who offers gasoline for sale at a price below cost through the use of coupons, loyalty programs, membership-based pricing programs, or promotions or programs of similar import is not in violation of this section. | ||
| Florida | retail (nonrefiner) | prohibition | Predatory practices unlawful; exceptions. | F.S. 526.304 | It is unlawful for any nonrefiner engaged in commerce in this state to sell any grade or quality of motor fuel at a retail outlet below nonrefiner cost, where the effect is to injure competition. | An isolated, inadvertent incident involving activity prohibited pursuant to subsection (1) or subsection (3) shall not be a violation of this act. (b) A refiner’s sale below refiner cost or a nonrefiner’s sale below nonrefiner cost made in good faith to meet an equally low retail price of a competitor selling motor fuel of like grade in the same relevant geographic market which can be used in the same motor vehicle, or of the same or similar items in combination with motor fuel of like grade which can be used in the same motor vehicle, is not a violation of this act. | ||
| North Carolina | retail | prohibition | Unlawful below-cost selling; exceptions. | G.S. 75-82 | It shall be unlawful where the intent is to injure competition for any motor fuel merchant or the affiliate of any motor fuel merchant to sell with such frequency as to indicate a general business practice of selling at a motor fuel outlet any grade, brand or blend of motor fuel for less than the cost of that grade, brand or blend of motor fuel | (i) the price is established in good faith to meet or compete with the lower price of a competitor in the same market area on the same level of distribution selling the same or comparable product of like quality, (ii) the price remains in effect for no more than 10 days after the first sale of that grade, brand or blend by the merchant at a new retail outlet, (iii) the sale is made in good faith to dispose of a grade, brand or blend of motor fuel for the purpose of discontinuing sales of that product, or (iv) the sale is made pursuant to the order or authority of any court or governmental agency. | ||
| Florida | retail (refiner) | prohibition | Predatory practices unlawful; exceptions. | F.S. 526.304 | It is unlawful for any refiner engaged in commerce in this state to sell any grade or quality of motor fuel at a retail outlet below refiner cost, where the effect is to injure competition. | An isolated, inadvertent incident involving activity prohibited pursuant to subsection (1) or subsection (3) shall not be a violation of this act. (b) A refiner’s sale below refiner cost or a nonrefiner’s sale below nonrefiner cost made in good faith to meet an equally low retail price of a competitor selling motor fuel of like grade in the same relevant geographic market which can be used in the same motor vehicle, or of the same or similar items in combination with motor fuel of like grade which can be used in the same motor vehicle, is not a violation of this act. |
Where this came from
Every record above links the page it was taken from and quotes the sentence that states it. These are the 11 sources this dataset was assembled from.
- ncleg.govhttps://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_75/GS_75-81.html
- revisor.mo.govhttps://revisor.mo.gov/main/OneSection.aspx?section=416.605
- revisor.mn.govhttps://www.revisor.mn.gov/statutes/cite/325D.01
- leg.state.fl.ushttp://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0526/Sections/0526.303.html
- code.wvlegislature.govhttps://code.wvlegislature.gov/47-11A-6/
- datcp.wi.govhttps://datcp.wi.gov/Pages/Programs_Services/UnfairSalesAct.aspx
- revisor.mo.govhttps://revisor.mo.gov/main/OneSection.aspx?section=416.615
- code.wvlegislature.govhttps://code.wvlegislature.gov/47-11A-2/
- revisor.mn.govhttps://www.revisor.mn.gov/statutes/cite/325D.71
- leg.state.fl.ushttp://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0526/Sections/0526.304.html
- ncleg.govhttps://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_75/GS_75-82.html
Machine-readable
- data.jsonThe whole dataset — every record with its source URL and source quote.
- Open Knowledge Format bundleOne JSON object per line — every record's frontmatter and quoted span exactly as it is held here, in one fetch.
- How this is made and checkedWhat "verified against source" does and does not mean.
From your own code
Same records, same quotes, without scraping the page: refsource is on PyPI and npm. Each value comes back carrying the URL it was read from and the sentence on that page that states it — .source and .quote sit on the value itself rather than in a side channel, so the checking step is available instead of skipped.
pip install refsource
refsource lookup motor-fuel-minimum-markup-laws-by-state state="North Carolina"
npx -y refsource lookup motor-fuel-minimum-markup-laws-by-state state="North Carolina"