HOUSE BILL REPORT

HB 1524

BYRepresentatives Cole, Prince, Jacobsen, Fisher, Holm, P. King, Basich, Valle, Lux, Locke, Brough, Winsley, Hankins and Rasmussen

Regulating manufacturer's rebates.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (10)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, Sayan and Walker.

House Staff:Joan Elgee (786-7166)

AS PASSED HOUSE FEBRUARY 9, 1988

BACKGROUND:

A rebate is a type of sales promotion whereby a manufacturer typically agrees to refund part of the purchase price of retail goods if the consumer sends in proof of purchase and meets other requirements.  Washington does not currently regulate rebates.

Dissatisfaction has been expressed by some consumers who have failed to receive rebates.

SUMMARY:

A retailer advertising a manufacturer rebate shall either (1) pay the rebate to the consumer at the time of sale, or (2) have the rebate form available for the consumer at the time of advertisement and promotion, and display in close proximity to the goods all requirements for receiving the rebate and the location in the store for obtaining the rebate forms.

A retailer is prohibited from advertising a rebate if the rebate offer has expired or will expire before the consumer can reasonably obtain the rebate.

A violation of the provisions constitutes a consumer protection violation and subjects the retailer to a minimum $100 damage award.

Fiscal Note:      Requested January 25, 1988.

House Committee ‑ Testified For:    Representative Grace Cole, Prime Sponsor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Many consumers have had problems with rebates.  The bill will make obtaining rebates simpler.

House Committee - Testimony Against:      None Presented.