Krebs protects consumers and small business

Thursday, Oct. 19, 2006

Maryland’s predatory pricing law, known as the Gasoline Sales Below Cost Act, is the best consumer and protection law in the country. The law encourages expansion of existing outlets and encourages new competitors to enter the Maryland market. In fact new competitors are coming in increasing numbers every day.

A Maryland court case graphically demonstrated that when gasoline competitors are forced out of markets by predatory pricing, gasoline prices increase dramatically. This has been confirmed by a comprehensive University of Wisconsin economic study, covering a 20-year period that shows states with sales-below-cost laws actually have lower prices than those that don't.

Maryland consumer's benefit.

In 2001, when the Maryland legislature passed the Below Cost Sales Act, it was acutely aware of the benefits to Maryland consumers as well as to many family run small businesses, a win-win situation for all.

Last year, a small group of ideologues wanted to change the predatory pricing law for their own political gain and they were soundly defeated in the legislature. Once again, Maryland consumers benefited.

Delegate Susan Krebs resisted the political pressure and voted to protect Maryland consumers and small family run Maryland businesses. She is the kind of legislator who is good for Maryland.

Peter Horrigan, Severna Park
The writer is president of the Mid-Atlantic Petroleum Distributors Association based in Arnold, Md.