CHAPTER 225

(HB 1150)

Deceptive trade practices revision.

         ENTITLED, An Act to  revise certain provisions relating to deceptive trade practices.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That subdivision (12) of § 37-24-6 be amended to read as follows:

             (12)      Sell, market, promote, advertise, or otherwise distribute any card or other purchasing mechanism or device that is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases if:

             (a)      The card or other purchasing mechanism or device does not expressly state in bold and prominent type, prevalently placed, that discounts are not insurance;

             (b)      The discounts are not specifically authorized by a separate contract with each pharmacy listed in conjunction with the card or other purchasing mechanism or device; or

             (c)      The discount or access to discounts offered, or the range of discounts or access to the range of discounts, is misleading, deceptive, or fraudulent, regardless of the literal wording.

                 The provisions of this subdivision do not apply to a customer discount or membership card issued by a store or buying club for use in that store or buying club , or a patient access program voluntarily sponsored by a pharmaceutical manufacturer, or a consortium of pharmaceutical manufacturers, that provide free or discounted prescription drug products directly to low income or uninsured individuals either through a discount card or direct shipment .

     Signed February 28, 2007

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