The Fresh Markets grocery chain was selling milk too cheaply in Louisiana — and regulators told the company that it was violating state law.
In a weekly promotion, the upscale chain was selling milk for $2.99 a gallon in the Baton Rouge area, The Advocate newspaper reports
. But Louisiana law requires retailers to price markups at least 6 percent over invoice and shipping costs.
“Because milk is a commodity product with regulated costs that are subject to change, at the current cost, due to Louisiana state law, we are unable to honor the $2.99 Tuesday deal for milk,” Drewry Sackett, a Fresh Markets representative, told The Advocate. “Because the cost of milk fluctuates, it is possible that we will be able to offer the $2.99 deal on milk again in the future.”
Louisiana Agriculture and Forestry Commissioner Mike Strain said: “They can sell it 6 percent over cost all day long. It’s when they sell it below cost that it becomes a problem.”
Strain’s office had received a complaint about Fresh Markets’ promotion, prompting an investigation, The Advocate reports.
© 2013 Newsmax. All rights reserved.