{"data":{"id":"us-ky/krs-365.030","jurisdiction":"us-ky","citation":"KRS 365.030","heading":"Sale at less than cost or gift of commodity to destroy competition","body":"prohibited.\n(1) Except as provided in KRS 365.040, no person engaged in business within this state\nshall sell, offer for sale or advertise for sale any article or product, or service o r\noutput of a service trade, at less than the cost thereof to such vendor, or give, offer\nto give or advertise the intent to give away any article or product, or service or\noutput of a service trade, for the purpose of injuring competitors and destroying\ncompetition.\n(2) In establishing the cost of a given article or product to the distributor and vendor,\nthe invoice cost of the article or product purchased at a forced, bankrupt or close-out\nsale, or other sale outside of the ordinary channels of trade, ma y not be used as a\nbasis for justifying a price lower than one based upon the replacement cost as of the\ndate of the sale of the article or product replaced through the ordinary channels of\ntrade, unless the article or product is kept separate from goods p urchased in the\nordinary channels of trade and unless the article or product is advertised and sold as\nmerchandise purchased at a forced, bankrupt or close -out sale or by means other\nthan through the ordinary channels of trade, and the advertising states the conditions\nunder which the goods were so purchased, and the quantity of the merchandise to be\nsold or offered for sale.\n(3) As applied to production, \"cost\" includes the cost of raw materials, labor and all\noverhead expenses of the producer. As applied  to distribution, \"cost\" means the\ninvoice or replacement cost, whichever is lower, of the article or product to the\ndistributor and vendor plus the cost of doing business by the distributor and vendor.\nThe \"cost of doing business\" or \"overhead expense\" me ans all costs of doing\nbusiness incurred in the conduct of the business and must include without limitation\nthe following items of expense: Labor (including salaries of executives and\nofficers), rent, interest on borrowed capital, depreciation, selling cos t, maintenance\nof equipment, delivery cost, credit losses, all types of licenses, taxes, insurance and\nadvertising. \"Vendor\" includes any person who performs work upon, renovates,\nalters or improves any personal property belonging to another person.\n(4) Where a person complained of as violating any of the provisions of this section is a\nmember of a particular trade or industry that has an established cost survey for the\nlocality and vicinity in which the offense is committed, the cost survey shall be\ncompetent evidence to be used in proving the costs of such person.","path":["KRS Chapter 365"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34735","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:00Z","sha256":"15b32755699d62121d7f5fea6a20e5088c5b728b9c146005d15205355631406c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-365.020","next":"us-ky/krs-365.040"},"notice":"GroundRules: Original legal text. Not legal advice."}