THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Title 9 of The Philadelphia Code is hereby amended to add a new Section as follows:
TITLE 9. REGULATION OF BUSINESSES, TRADES AND PROFESSIONS.
CHAPTER 9-600. SERVICE AND OTHER BUSINESSES.
§ 9-648. Prohibition on Upward Rounding of Cash Transactions.
(1) Definitions.
(a) Cash Transaction shall mean any retail sale in which payment is made in physical United States currency.
(b) Retail Establishment shall mean any person, firm, partnership, corporation, or other entity selling goods or services directly to consumers within the City of Philadelphia.
(c) Rounding shall mean adjusting the final transaction total to the nearest increment of five cents ($0.05) or ten cents ($0.10) due to the absence of exact coinage.
(2) Prohibited Conduct. No retail establishment shall round the total amount of a cash transaction upward to the nearest five-cent ($0.05) or ten-cent ($0.10) increment when a customer tenders payment without exact change.
(3) Required Rounding Practice.
(a) In any cash transaction where exact change in one-cent increments is unavailable, the retail establishment shall round the total transaction amount downward to the nearest five-cent ($0.05) increment.
(b) Under no circumstances shall the rounded amount exceed the originally calculated total.
(4) Consumer Protection.
(a) Retail establishments shall clearly disclose, at the point of sale, their rounding policy in a manner visible to consumers.
(b) Any practice that results in a net financial disadvantage to the consumer through systematic upward rounding is considered an unfair trade practice.
(5) Enforcement and Penalties.
(a) The Department of Licenses and Inspections, or such other agency as designated by the Mayor, shall enforce the provisions of this Section
(b) Any retail establishment found in violation shall be subject to:
(i) A warning for a first offense;
(ii) A fine of not less than $100 and not more than $300 for a second offense;
(iii) A fine of not less than $300 and not more than $1,000 for each subsequent
offense.
(6) Severability.
If any provision of this Ordinance is held invalid by a court of competent jurisdiction, such invalidity shall not affect the remaining provisions.
SECTION 2. This Ordinance shall take effect immediately after enactment.
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Explanation:
Italics
indicate new matter added.
End