Oklahoma’s Unfair Sales Act: Rep. Bashore’s Bill Seeks to End 6% Retail Markup

In a significant move for Oklahoma’s retail landscape, Rep. Steve Bashore’s bill to amend the state’s Unfair Sales Act passed the Oklahoma House of Representatives on Monday with overwhelming support. House Bill 1024, also known as the Unfair Sales Act, seeks to remove the state’s 6% mandatory markup on retail products, which has been in place since 1949. This change promises to bring significant shifts in how goods are priced, offering more flexibility for retailers and potential relief for consumers.

The 6% markup, applied to a variety of products such as groceries, over-the-counter medications, pet food, health and beauty aids, and baby supplies, has long been a fixture of Oklahoma’s retail environment. While originally designed to protect small, local businesses from the competitive pricing power of larger retailers, the law has come under scrutiny in recent years. Rep. Bashore argues that it is now an outdated regulation that places an unnecessary burden on consumers and stores alike.

“Oklahoma is one of only seven states that still has this mandatory markup, and it creates an uneven playing field,” said Rep. Bashore, who represents District 7 in Ottawa County and parts of Craig and Delaware counties. “This legislation should give Oklahomans some inflation relief, and it will give retailers greater discretion over setting their own prices.”

Bashore further explained that he had personally observed the unfair impact of the markup law. He pointed to an experience where he purchased the same item from a big-box store in Oklahoma and compared it to the same item in Joplin, Missouri, just across the state line. The item was a dollar cheaper in Joplin, illustrating how the 6% markup is driving up prices for Oklahoma residents.

The bill, which passed the House with a resounding 89-3 vote, is now headed to the state Senate, where it will be authored by Sen. Julie Daniels, R-Bartlesville. If passed, the bill will remove the mandatory markup and give retailers the flexibility to set prices based on their own operating costs and market conditions.

The law’s long-standing application has become increasingly contentious in a modern retail environment, where consumers can easily compare prices across state lines and even globally via the internet. Bashore, who has been vocal in his support for market-driven pricing, believes that the removal of the 6% markup would help bring Oklahoma in line with the broader retail market.

“This government-mandated markup violates the free market,” Bashore stated. “It dictates pricing and places brick-and-mortar retailers at a disadvantage, especially when competing with online retailers, who have no such restrictions.”

Though supporters of the bill, like Bashore, argue that the change will create a more level playing field for all retailers, the proposal has sparked concerns among some local businesses. Critics, particularly small grocers and convenience store owners, worry that the removal of the markup could further tilt the balance in favor of larger retailers with stronger purchasing power.

However, Bashore remains firm in his belief that the law has outlived its usefulness. He noted that while big-box stores have lower prices due to their bulk purchasing power, they will still be prevented from engaging in predatory pricing under the current law, which bans such practices. This ensures that smaller retailers won’t be pushed out of business by larger competitors, even without the mandatory markup.

“I can’t explain to a senior why they must pay 6% more for their OTC meds or a single mother why she has to pay 6% more for her child’s diapers just because they live in Oklahoma,” Bashore said. “If I ran the bill today that mandated retailers must increase their products 6% over cost, would it pass? The answer is absolutely not!”

The proposed amendment to the Unfair Sales Act represents a critical change in Oklahoma’s retail regulations. If passed, House Bill 1024 would eliminate a longstanding pricing restriction that many argue no longer serves its original purpose. While opponents of the bill remain concerned about its potential effects on local businesses, Rep. Bashore’s legislation aims to create a more competitive and consumer-friendly retail environment in Oklahoma.

The bill is set for a hearing in the state Senate soon, and if it passes, it is expected to go into effect on November 1, 2025. With the support of key lawmakers like Sen. Julie Daniels, it appears that Oklahoma is poised for a retail revolution that could help lower prices and give retailers more control over their pricing strategies.

As this bill moves forward, it will be interesting to see how it impacts Oklahoma’s economy, both for consumers looking for relief from inflationary pressures and for retailers striving to compete in an increasingly digital and competitive world.