KRS 365.265: Legislative findings.

(1) The General Assembly hereby finds and declares as follows:

(a) Cigarettes, because of their standardized character, their great popularity, their

widespread and varied types of markets and methods of distribution and the

sensitivity of their distribution t o price fluctuations, possess a distinct

marketing character and, the economic facts and circumstances peculiar to

their distribution, require special and individualized treatment of the problems

created by the sale of cigarettes below cost.

(b) The sale of cigarettes below cost for the purpose of destroying or substantially

lessening competition is inimical to the orderly and efficient collection by the

Commonwealth of excise taxes on cigarettes and taxes from the licensing of

persons engaged in the sale of cigarettes at wholesale and retail.

(c) The sale of cigarettes below cost for the purpose of destroying or substantially

lessening competition is an unfair business practice, which tends to be

disorganizing in the sale and distribution of cigarettes, and ultimately fosters

monopoly and high prices by tending to force independent wholesalers and

retailers out of business.

(2) The General Assembly hereby declares it to be the policy of this Commonwealth to

promote the public welfare by prohibiting the sale of cigarettes below cost, and it is

the purpose of KRS 365.280 to carry out that policy in the public interest.