(October 8, 2007) The California Chamber of Commerce is asking the Governor to veto legislation that will harm consumers by discouraging retailers from offering manufacturers’ rebates.

AB 1673 (Feuer; D-Los Angeles) requires retailers to pay manufacturers’ rebates immediately to consumers at the point of purchase.

“The current rebate structure gives consumers the choice to seek the price savings accessible through rebate offers,” said CalChamber policy advocate Kyla Christoffersen. “If AB 1673 is enacted, consumers may no longer have that choice.”

Bureaucracy

AB 1673 would create bureaucracy for private business in California, forcing retailers to become rebate clearinghouses.

Complying will increase costs for all retailers, especially small retailers, which are less likely than larger retailers to have the resources necessary to establish a system for processing rebates.

AB 1673 is more burdensome than legislation vetoed by the Governor last year, SB 1737 (Figueroa; D-Fremont), which placed restrictions on rebates.

Loss for California Consumers

In vetoing SB 1737, the Governor pointed out that greater restrictions on rebate offers in California could result in national companies no longer offering rebates here.

AB 1673 poses an even greater threat that rebates in California will be eliminated by creating significant new burdens for retailers that advertise and make the manufacturers’ rebates available to consumers who would not otherwise know about or have access to those rebates.

“Consumers have a lot of power,” said Christoffersen. “If a retailer or manufacturer is not treating a customer well, that customer can vote with their feet and walk away from the purchase. The CalChamber encourages consumers to use all the tools available to them to research, find the best ways to save, and to patronize retailers and manufacturers that are doing things right."

“Creating new government mandates, more bureaucracy and driving up costs for business — and ultimately consumers — is not the answer,” she said. “That is why we are asking the Governor to veto AB 1673.”

Action Needed

Write the Governor and urge him to veto AB 1673. For a sample letter, visit www.calchambervotes.com.

Staff Contact: Kyla Christoffersen