This morning, the Oklahoma House of Representatives unanimously passed SB638, a committee substitute that updates key provisions of the state’s Unfair Sales Act. The bill now advances to Governor Stitt for signature and, if signed, will take effect on November 1, 2025.

SB638 modifies statutory definitions related to retailer and wholesaler pricing practices, with particular emphasis on the sale of motor fuel. Under the updated language, it is a violation for retailers to advertise, offer, or sell merchandise below “cost to the retailer,” which is defined as the lower of the invoice or replacement cost, plus any freight charges, cartage (presumed to be 0.75% of cost if not otherwise documented), applicable state and federal taxes, and a six percent markup to reflect standard business overhead unless a lower actual cost is proven. A parallel definition is applied for wholesalers.

Retailers who sell general merchandise below cost may be fined up to $500 per offense. A separate provision now specifically addresses motor fuel, imposing a fine of up to $1,000 per offense for below-cost sales of gasoline and similar fuels as defined in Title 68, Section 500.3(44).

The bill does not apply to goods sold above cost, to bundled promotions priced at or above threshold cost levels, or to items sold for resale or further manufacturing.

Watch the House Floor deliberation here.

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