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An Act
ENROLLED SENATE
BILL NO. 638 By: Daniels, Frix, and Woods of
the Senate
and
Bashore, Moore, Eaves,
Banning, Pfeiffer, Turner,
Osburn, Lepak, and
Rosecrants of the House
An Act relating to the Unfair Sales Act; amending 15
O.S. 2021, Section 598.2, which relates to
definitions; modifying definitions; defining term;
updating statutory language and references; amending
15 O.S. 2021, Section 598.4, which relates to
violations of act; creating penalty for retailers who
violate act when selling motor fuel; and providing an
effective date.
SUBJECT: Unfair Sales Act
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Section 598.2, is
amended to read as follows:
Section 598.2. For the purposes of the Unfair Sales Act:
(a) The term “cost 1. “Cost to the retailer” means the invoice
cost of the merchandise to the retailer or the replacement cost of
the merchandise to the retailer, whichever is the lower; less all
trade discounts except customary discounts for cash; to which shall
be added (1) (a) freight charges not otherwise included in the
invoice cost or the replacement cost of the merchandise as herein
set forth, and (2) (b) cartage to the retail outlet if done or paid
for the retailer, which cartage cost, in the absence of proof of a
lesser cost, shall be deemed to be three-fourths of one percent (3/4
ENR. S. B. NO. 638 Page 2
of 1%) of the cost to the retailer as herein defined after adding
thereto freight charges but before adding thereto cartage, and
taxes, (3) and (c) all state and federal taxes not heretofore added
to the cost as such, and (4) a markup to cover a proportionate part
of the cost of doing business, which markup, in the absence of proof
of a lesser cost, shall be six percent (6%) of the cost of the
retailer as herein set forth after adding thereto freight charges
and cartage but before adding thereto a markup;
(b) The term “cost 2. “Cost to the wholesaler” means the
invoice cost of the merchandise to the wholesaler, or the
replacement cost of the merchandise to the wholesaler, whichever is
the lower; less all trade discounts except customary discounts for
cash; to which shall be added, (1) (a) freight charges, not
otherwise included in the invoice cost or the replacement cost of
the merchandise as herein set forth, and (2) (b) cartage to the
retail outlet if done or paid for by the wholesaler, which cartage
cost, in the absence of proof of a lesser cost, shall be deemed to
be three-fourths of one percent (3/4 of 1%) of the cost to the
wholesaler as herein set forth after adding thereto freight charges
but before adding thereto cartage, and taxes, and (3) (c) all state
and federal taxes not heretofore added to the cost as such;
(c) The term “replacement 3. “Replacement costs” means the
cost per unit at which the merchandise sold or offered for sale
could have been bought by the seller at any time within thirty (30)
days prior to the date of sale or the date upon which it is offered
for sale by the seller if bought in the same quantity or quantities
as the seller’s last purchase of said merchandise;.
(d) When one or more items advertised, offered for sale, or sold
with one or more other items at a combined price, or advertised,
offered as a gift, or given with the sale of one or more other
items, each and all of the items shall be deemed to be advertised,
offered for sale, or sold, and the price of each item named shall be
governed by the provisions of paragraphs (a) or (b) paragraph 1 or 2
of this section, respectively;
(e) The terms “sell 4. “Retailer” means and includes every
person, partnership, corporation, or association engaged in the
business of making sales at retail within this state; provided,
that, in the case of a person, partnership, corporation, or
ENR. S. B. NO. 638 Page 3
association engaged in the business of making both sales at retail
and sales at wholesale, such term shall be applied only to the
retail portion of such business;
5. “Sell at retail”, “sales at retail”, and “retail sale” mean
and include any transfer for valuable consideration made in the
ordinary course of trade or in the usual prosecution of the seller’s
business of title to tangible personal property to the purchaser for
consumption or use other than resale or further processing or
manufacturing. The above Such terms shall include any transfer of
such property where title is retained by the seller as security for
the payment of the purchase price;
(f) The terms “sell 6. “Sell at wholesale”, “sales at
wholesale”, and “wholesale sales” mean and include any transfer for
a valuable consideration made in the ordinary course of trade or the
usual conduct of the seller’s business, of title to tangible
personal property to the purchaser for purposes of resale or further
processing or manufacturing. The above Such terms shall include any
transfer of such property where title is retained by the seller as
security for the payment of the purchase price; and
(g) The term “retailer” means and includes every person,
partnership, corporation or association engaged in the business of
making sales at retail within this state; provided that, in the case
of a person, partnership, corporation or association engaged in the
business of making both sales at retail and sales at wholesale, such
term shall be applied only to the retail portion of such business;
(h) The term “wholesaler” 7. “Wholesaler” means and includes
every person, partnership, corporation, or association engaged in
the business of making sales at wholesale within this state;
provided, that, in the case of a person, partnership, corporation,
or association engaged in the business of making both sales at
wholesale and sales at retail, such term shall be applied only to
the wholesale portion of such business.
SECTION 2. AMENDATORY 15 O.S. 2021, Section 598.4, is
amended to read as follows:
Section 598.4. A. Any retailer who shall, in contravention of
the policy of the Unfair Sales Act, advertise, offer to sell or sell
ENR. S. B. NO. 638 Page 4
at retail any item of merchandise at less than cost to the retailer
as defined in this act;, or any wholesaler who shall, in
contravention of the policy of the Unfair Sales Act, advertise,
offer to sell, or sell at wholesale any item of merchandise at less
than cost to the wholesaler as defined in the Unfair Sales Act,
shall be guilty of a misdemeanor and, upon conviction, shall be
punished by a fine of not more than Five Hundred Dollars ($500.00).
B. Any retailer who shall, in contravention of the policy of
the Unfair Sales Act, advertise, offer to sell or sell at retail
motor fuel as defined in paragraph 44 of Section 500.3 of Title 68
of the Oklahoma Statutes at less than cost to the retailer as
defined in this act, or any wholesaler, who shall in contravention
of the policy of the Unfair Sales Act, advertise, offer to sell, or
sell at wholesale motor fuel as defined in paragraph 44 of Section
500.3 of Title 68 of the Oklahoma Statutes at less than cost to the
wholesaler as defined in the Unfair Sales Act, shall be guilty of a
misdemeanor and, upon conviction, shall be punished by a fine of not
more than One Thousand Dollars ($1,000.00).
SECTION 3. This act shall become effective November 1, 2025.
ENR. S. B. NO. 638 Page 5
Passed the Senate the 15th day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 29th day of April, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________