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H 7719Rights & Warranties

Commercial Law - General Regulatory Provisions - Unfair Sales Practices

Retailers must provide offline alternatives, like paper coupons or in-store kiosks, for shoppers to access digital food discounts.

Held for study
Population
Affected
35
Introduced Feb 12, 2026Committee House Corporations

Plain-English Summary

This bill mandates that retailers offering digital coupons for food and related items must provide an alternative way for customers to receive the same discounted price without needing a smartphone or personal computing device. Stores can meet this requirement by offering paper coupons, providing in-store electronic kiosks, or applying the discount directly at the point of sale upon a customer's request. The legislation aims to ensure that all shoppers have equal access to advertised sales prices regardless of their access to technology. Violations of this requirement are punishable by a fine of up to $500.

For younger readers

Sometimes grocery stores have special lower prices, but you can only get them if you use a smartphone app. Some people, like older grandparents, might not have smartphones or know how to use apps. This new rule says that stores must let everyone get the special price, even if they don't have a phone or computer. The store has to give them a paper coupon, use a machine in the store, or just give them the discount at the register if they ask. This makes sure everyone pays the same fair price for food.

Who & Where It Applies

Impacted groups
Grocery ShoppersSupermarket OwnersSenior CitizensLow-Income ResidentsRetail Associations
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Promotes economic equity by ensuring that low-income individuals, who may lack access to smartphones or reliable high-speed internet, are not excluded from accessing lower food prices and essential discounts.
  • Protects the elderly population, who are often less digitally literate, ensuring they are not financially penalized for their inability to navigate complex digital coupon apps.
  • Reduces the coercive nature of data surveillance capitalism by allowing consumers to access fair market prices without being forced to trade their personal data and shopping habits through an app.
  • The maximum fine of five hundred dollars is likely too low to be a significant deterrent for large corporate grocery chains, potentially leading them to treat the fine as a cost of doing business rather than complying.
  • Does not mandate automatic application of the lowest price; by still requiring the consumer to "request" the discount or use a kiosk, it places the burden of action on the marginalized individual rather than the corporation.
  • Retailers may potentially reduce the total number of discounts offered or raise base prices to offset the administrative costs of implementing physical kiosks or manual overrides, indirectly hurting the poor.
For Conservatives
  • Protects consumer privacy by ensuring that citizens are not forced to share personal data or download tracking software onto their private devices just to participate in the open market.
  • Supports senior citizens, a key constituency who value traditional commerce, by ensuring they are not alienated by forced technological adoption in daily life.
  • Upholds the integrity of advertised pricing by ensuring that a price marketed to the public is actually available to the public, rather than hidden behind a technological gate.
  • Imposes unnecessary government regulations on private businesses, dictating how they must structure their marketing and sales promotions, which interferes with free market operations.
  • Places a financial and logistical burden on business owners to purchase kiosks, print paper coupons, or retrain staff, potentially driving up operating costs.
  • Interferes with the right of contract between a buyer and seller; if a business wants to incentivize app usage through discounts, the government should not force them to offer that benefit to those who refuse the terms.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 21 additions

It is enacted by the General Assembly as follows:

SECTION 1. Sections 6-13-1 and 6-13-11 of the General Laws in Chapter 6-13 entitled "Unfair Sales Practices" are hereby amended to read as follows: 6-13-1. Definitions.

(a) “Cost to the retailer” means the invoice cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, in the quantity last purchased, whichever is lower; less all trade discounts except customary discounts for cash; to which shall be added:

(1) Freight charges not otherwise included in the cost of the merchandise;

(2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the retailer, unless the retailer claims and proves a lower cartage cost; and

(3) A markup to cover in part the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet.

(b) “Cost to the wholesaler” means the invoice cost of the merchandise to the wholesaler within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased, whichever is lower; less all trade discounts except customary discounts for cash; to which shall be added:

(1) Freight charges not otherwise included in the cost of the merchandise;

(2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and

(3) A markup to cover in part the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be two percent (2%) of the total cost at the wholesale establishment.

(c) Where two (2) or more items are advertised; offered for sale; or sold at a combined price; the price of each item shall be determined in the manner stated in subsections (a) and (b).

(d) “Sell at retail”, “sales at retail”, and “retail sale” mean and include any transfer of title to tangible personal property for a valuable consideration made in the ordinary course of trade or in the usual prosecution of the seller’s business to the purchaser for consumption or use other than resale or further processing or manufacturing. In this and in the preceding subsection the previous terms shall include any transfer of property where title is retained by the seller as security for the payment of the purchase price.

(e) “Retailer” means and includes every person, co-partnership, corporation, or association engaged in the business of making sales at retail within this state; provided, that, in the case of a retailer engaged in the business of making sales both at retail and at wholesale, the term shall be applied only to the retail portion of the business.

(f) “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 wholesaler engaged in the business of making sales both at wholesale and at retail, the term shall be applied only to the wholesale portion of the business.

(g) Whenever any person, partnership, corporation, or association in the course of doing business performs the functions of both wholesaler and retailer without actually being engaged in the business of making sales at wholesale, the term “wholesaler” means and includes that function of the business of preparation for sale at the retail outlet, and the term “retailer” shall be applied only to the retail portion of the business.

(h) “Household” means and includes those who dwell under the same roof, house, or apartment.

(i) “Rebate” means a refund of a portion of the purchase price made to consumer to induce purchase of product.

(j) "Digital coupon" means any store coupon, rebate, or similar instrument presented solely through the Internet, and only obtainable through a consumer's personal computing device, and that provides to a consumer a discounted price or benefit, redeemable at the physical location where the goods or services are being offered for sale. 6-13-11. Discount price advertisement.

(a) It shall be unlawful to use, communicate, or publish any advertisement that states that an item or product is being sold or offered for sale at below the regular price or at a percentage off the regular price without posting the regular price at the point of purchase.

(b) Whenever an item or product is advertised for sale at below the regular price or at a percentage off the regular price, the advertisement shall clearly state whether there is an additional charge for equipment or services that are reasonably necessary for the proper use of the product.

(c) Whenever food and related items, as defined in § 44-18-7.1, are advertised by a retailer for sale at or below the regular price or at a percentage off the regular price through the redemption of a digital coupon, the retailers shall provide a purchaser with the ability to obtain the same discounted price or other benefit offered by the digital coupon through an alternative method not requiring the use of a personal computing device. Such alternative methods may include, but are not limited to, paper coupons, electronic kiosks, or application of the discounted price or benefit at the point-of-sale upon the request of the consumer. Such in-store alternatives shall be readily available and easily accessible to the consumer, and in the case of electronic kiosks, be prominently displayed in the store.

(d) Any person, firm, or corporation who or that shall violate the provisions of this section shall be punished by a fine of not more than five hundred dollars ($500).

(e) Severability. If any portion of this section is found by a court of competent jurisdiction to be the unlawful, such finding shall not affect any other portion of this section not specifically so found.

SECTION 2. This act shall take effect on January 1, 2027.