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Home » US Law » 2022 Maryland Statutes » Commercial Law » Title 11 - Trade Regulation » Subtitle 5 - Cigarette Sales Below Cost Act

Section 11-501 – Definitions

    (a)    In this subtitle the following words have the meanings indicated.     (b)    “Basic cost of cigarettes” means the lesser of the invoice cost or the replacement cost of cigarettes to the retailer or wholesaler; plus any in–freight charge to the wholesaler otherwise not included in the invoice cost or the replacement cost; plus, for the wholesaler, the […]

Section 11-502 – Exceptions

    (a)    This subtitle does not apply to a retail sale of cigarettes or a wholesale sale of cigarettes, if they are sold:         (1)    At a bona fide clearance sale, are so advertised and marked, and the quantity is accurately, clearly, and conspicuously stated in all advertising of the sale and on signs conspicuously posted where the sale […]

Section 11-503 – Special Cost Provisions

    (a)    In a wholesale sale of cigarettes, the presumptive wholesale markup of 5 percent provided for in § 11-501(e) of this subtitle may be reduced by 2 cents for each carton of 200 cigarettes, if:         (1)    The cigarettes are not delivered unless their full price is received by the wholesaler at or before delivery; and         (2)    The purchaser […]

Section 11-504 – Sale or Purchase at Less Than Cost Prohibited

    (a)    A retailer or wholesaler with intent to injure a competitor or to destroy or substantially lessen competition may not make a retail sale of cigarettes or a wholesale sale of cigarettes at less than the cost to the retailer or the cost to the wholesaler, respectively.     (b)    A retailer may not purchase cigarettes from a wholesaler […]

Section 11-505 – Combination Sales and Concessions

    (a)    Except as provided in subsection (b) of this section, a retailer or wholesaler with intent to injure a competitor or to destroy or substantially lessen competition may not:         (1)    Sell cigarettes in combination with any other item of merchandise if the other item is given free of charge or sold at a price below its cost […]

Section 11-506 – Evidence

    (a)    In any proceeding under this subtitle, including a proceeding relating to licenses before the State Comptroller, proof of a sale by a retailer or a wholesaler of cigarettes or of any other item in combination or in connection with cigarettes at less than their cost to the retailer or their cost to the wholesaler, respectively, […]

Section 11-507 – Administration and Enforcement

    (a)    It is the duty of the State Comptroller to enforce this subtitle.     (b)    The State Comptroller shall:         (1)    Employ and determine the duties and compensation of the inspectors and other personnel necessary to enforce this subtitle; and         (2)    Adopt reasonable rules and regulations necessary to effectuate and enforce the policies of this subtitle.

Section 11-508 – Remedies

    (a)    (1)    On complaint of the State Comptroller or any person affected, a circuit court has jurisdiction to:             (i)    Enjoin a retailer or wholesaler from the commission of any act prohibited by this subtitle; and             (ii)    Award damages and costs.         (2)    In an action for injunctive relief, it is not necessary for the complainant to allege or prove that an […]