H-547                _______________________________________________

                                                     HOUSE BILL NO. 46

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State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Armstrong and Kremen

Read first time 1/17/85 and referred to Committee on Judiciary.

AN ACT Relating to antitrust and unfair and deceptive business practices; amending RCW 19.86.920; and adding a new section to chapter 19.86 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 19.86 RCW to read as follows:

          This act is required to clarify the legislative intent concerning section 20, chapter 216, Laws of 1961 and RCW 19.86.920 which was the subject of State v. Black, 100 Wn.2d 793 (1984).  It has continuously been the legislative intent that, by patterning much of chapter 19.86 RCW after federal legislation, and by providing that state courts be guided by final decisions of the federal courts and final orders of the federal trade commission interpreting the various federal statutes, consumer and business interests would have a largely consistent body of federal and state law by which to define their expectations and conduct regarding fair and honest competition.  Furthermore, it has continuously been the legislative intent that the phrase "this act shall not be construed to prohibit acts or practices which are reasonable in relation to the development and preservation of business or which are not injurious to the public interest" recognizes the latitude given to reasonable business practices under the federal statutory scheme, but does not create a legislative directive to authorize acts or practices in Washington state which would be unlawful under federal law.

        Sec. 2.  Section 20, chapter 216, Laws of 1961 as last amended by section 4, chapter 288, Laws of 1983 and RCW 19.86.920 are each amended to read as follows:

          The legislature hereby declares that the purpose of this act is to complement the body of federal law governing restraints of trade, unfair competition and unfair, deceptive, and fraudulent acts or practices in order to protect the public and foster fair and honest competition.  It is the intent of the legislature that, in construing this act, the courts be guided by final decisions of the federal courts and final orders of the federal trade commission interpreting the various federal statutes dealing with the same or similar matters and that in deciding whether conduct restrains or monopolizes trade or commerce or may substantially lessen competition, determination of the relevant market or effective area of competition shall not be limited by the boundaries of the state of Washington.  To this end this act shall be liberally construed that its beneficial purposes may be served.

          It is, however, the intent of the legislature that this act shall not be construed to prohibit acts or practices which are reasonable in relation to the development and preservation of business or which are not injurious to the public interest, nor be construed to authorize those acts or practices which unreasonably restrain trade or are unreasonable per se, including but not limited to price fixing, division of markets, group boycotts, and tying arrangements.