Margin Labeling Act

Purpose: To promote transparency and empower consumers to make informed purchasing decisions by requiring retailers to disclose the profit margins on products they sell.

Section 1: Title This amendment shall be known as the Margin Labeling Act.

Section 2: Definitions a. "Retailer" refers to any business entity that sells goods directly to consumers. b. "Profit Margin" refers to the percentage difference between the cost price and the selling price of a product. c. "Cost Price" refers to the amount paid by the retailer to purchase the product from the supplier. d. "Selling Price" refers to the amount at which the retailer sells the product to the consumer.

Section 3: Margin Disclosure Requirement a. All retailers are required to disclose the profit margin on each product they sell. b. The profit margin must be displayed clearly and conspicuously on the price tag or shelf label of the product. c. The profit margin must be expressed as a percentage of the selling price.

Section 4: Format of Disclosure a. The margin disclosure must be in a font size and color that is easily readable by consumers. b. The disclosure must include the phrase "Retailer Margin" followed by the percentage value (e.g., "Retailer Margin: 20%").

Section 5: Exemptions a. Small businesses with fewer than 10 employees or annual revenues below $1 million are exempt from this requirement. b. Products sold at a discount or clearance price are exempt from margin disclosure requirements.

Section 6: Enforcement and Penalties a. The Federal Trade Commission (FTC) shall be responsible for enforcing the provisions of this amendment. b. Retailers found in violation of this amendment shall be subject to fines and penalties as determined by the FTC. c. Repeated violations may result in increased fines and potential suspension of retail licenses.

Section 7: Implementation and Compliance Timeline a. Retailers shall have a period of six months from the date of enactment to comply with the margin labeling requirements. b. The FTC shall provide guidance and support to retailers to ensure smooth implementation of this amendment.

Section 8: Public Awareness Campaign a. The FTC shall conduct a public awareness campaign to educate consumers about the Margin Labeling Act and its benefits. b. The campaign shall include informational materials, advertisements, and outreach initiatives to inform consumers about how to interpret and use margin disclosures.

Section 9: Review and Assessment a. The FTC shall conduct an annual review of the Margin Labeling Act to assess its impact on consumer behavior and market transparency. b. The findings of the review shall be presented to Congress with recommendations for any necessary adjustments or improvements to the amendment.

Section 10: Effective Date This amendment shall take effect one year from the date of its enactment.