Senate Modernizes Unit Pricing Law to Support Small Businesses

 Senate Modernizes Unit Pricing Law to Support Small Businesses 

Measure helps small businesses combat the impacts of inflation 

 

(BOSTON—2/26/2026) The Massachusetts Senate passed legislation today to support neighborhood bodegas, convenience stores, and small family-owned grocery shops by modernizing the unit pricing law.  

 

The bill ensures that smaller retailers will continue to be exempt from unit pricing requirements. Unit pricing, while a useful price-comparison tool for shoppers at big box stores and supermarkets, could pose a burden for smaller corner stores where unit price shopping is unlikely to occur. 

 

“Running into your local store is more than just picking up a few things, it’s about seeing familiar faces and supporting a local business in your community,” said Senate President Karen E. Spilka (D-Ashland). “While we work on systemic ways to lower costs for resident and businesses, this is a straightforward, common-sense change that is going to help businessowners who are feeling the pinch. I applaud Senator Moore for driving this issue forward and am thankful to Chair Rodrigues and Chair Payano for their stewardship.” 

 

“Small businesses are the economic engine of the Massachusetts marketplace economy, and we need to continue to support them as they try to compete against larger grocery stores and chain outlets. This bill will help smaller convenience stores and neighborhood markets stay economically viable by removing sales of Lottery products and gift cards from the annual sales equation,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “With an ever-increasing proliferation of large-scale national chain grocery stores and big box retailers, supporting community stores will assist in leveling the playing field for our local community stores and markets.” 

 

Massachusetts has offered an exemption from unit pricing for more than two decades to retailers with lower sales volumes—defined as establishments that generate less than $5 million in in-store sales each year, including sales of Lottery products and gift cards. 

 

With the steady rise of inflation, introduction of higher-value Lottery products, and increased popularity of pre-paid gift cards, local businesses are more apt to exceed the exemption threshold. The legislation—S.2965, An Act updating the unit pricing exemption threshold—removes Lottery and gift card sales from the calculation of whether a store can be included in the statewide unit price exemption. 

 

During the course of today’s debate, Senators voted to amend the bill to codify an existing exemption that removes gasoline and other motor fuel sales from the calculation.  

 

“By exempting Lottery ticket and prepaid gift card sales from the unit pricing threshold calculation, we are helping ensure the financial health of our small, neighborhood convenience stores,” said Senator Pavel M. Payano (D-Lawrence), Senate Chair of the Joint Committee on Consumer Protection and Professional Licensure. “As Senate Chair of the Joint Committee on Consumer Protection and Professional Licensure, I was proud to help advance this update, which strikes the right balance between protecting consumers and supporting our small businesses.” 

 

“The unit pricing exemption is a simple way to cut expenses for small businesses and support the communities they serve. However, in the two decades since the policy was written into law, the $5 million revenue threshold for the exemption has remained the same while the cost of products has risen significantly,” said Senator Michael O. Moore (D-Millbury), the bill’s lead sponsor. “This legislation makes small tweaks to how a store’s revenue is calculated to ensure the law continues to apply to the corner stores and small businesses it was originally intended to protect. I’d like to thank Senate President Karen Spilka and Ways and Means Chair Michael Rodrigues for recognizing the importance of this issue for our local economies, as well as Senator Pavel Payano and his committee for upholding the spirit of consumer protection laws while making reasonable carveouts for small businessowners who are struggling in today’s economy.” 

 

The bill was reported to the full Senate by the Committee on Ways and Means with a 16-0 vote on February 23, 2026. All committee votes are posted on the Legislature’s website and full details of the legislation are available in a fact sheet in the Senate Press Room. 

 

The Senate passed the bill on a 37-0