Wisconsin Administrative Code
Department of Agriculture, Trade and Consumer Protection
ATCP 90-139 - Trade and Consumer Protection
Chapter ATCP 105 - Sales Below Cost
Subchapter I - General Provisions
Section ATCP 105.004 - Cigarette multiple retailers

A cigarette multiple retailer, as defined in s. 139.30(8), Stats., who purchases cigarettes from a wholesaler shall compute the minimum selling price by adding the wholesaler markup, compounded with the retailer markup, to the price of the cigarettes the manufacturer charged the wholesaler.

Section 100.30(2) (L)2, Stats., defines cigarette multiple retailers as wholesalers. This permits other cigarette wholesalers (jobbers and distributors) to sell to multiple retailers with no markup, because ss. 100.30(2) (c) 1 a and b., Stats., which specify when jobbers and distributors must add a wholesale markup, do not cover sales between wholesalers. Under s. 100.30(2) (f), Stats., cigarette multiple retailers who have purchased from jobbers or distributors must apply both the wholesale and the retail markups. This rule consolidates the provisions of these statutes by requiring the use of a compounded markup. This rule also directs cigarette multiple retailers to use the manufacturer's price as the basis of their cost calculations, which is required by s. 100.30(2) (c) 1 b., Stats.

In the absence of proof of a lesser cost of doing business, a wholesaler's markup is at least 3% and a retailer's markup is at least 6%, making the total compounded markup for cigarettes sold under this rule at least 9.18%.