Selling below cost

Colo. Rev. Stat. § 6-2-113, under Unfair Practices Act.

Colo. Rev. Stat. § 6-2-113

For the purposes of this article, in all sales involving more than one product or service and in all sales involving the giving of any concession of any kind, the combined total selling price of all products or services shall be compared to the combined total cost of all products or services involved in the sales to determine whether the vendor or distributor is selling below cost.

Source: L. 49: p. 347, § 11. CSA: C. 48, § 302(9b). CRS 53: § 55-2-11. C.R.S. 1963: § 55-2-11. L. 2007: Entire section amended, p. 514, § 5, effective April 16.

ANNOTATION

Where the ability to make a purchase at a concession price is expressly contingent on the purchase of other goods, the concession goods are sold below cost only if the total price paid by the customer for the goods involved in such linked transactions is below the total cost of such goods. Parish Oil Co. v. Dillon Cos., 523 F.3d 1244 (10th Cir. 2008) (decided under law in effect prior to 2007 amendment).

A grocery store may sell gasoline below cost if such sales are conditioned on the purchase of enough groceries above cost that the entire series of transactions comes in at a profit. Parish Oil Co. v. Dillon Cos., 523 F.3d 1244 (10th Cir. 2008) (decided under law in effect prior to 2007 amendment).