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Bill

H 5138

An Act relative to consumer protections for low valued legal tender scarcity

194th Legislature (2025-2026) Introduced by Tackey Chan and 6 co-sponsors

Massachusetts establishes consumer protections against exploitation during low-value coin/currency scarcity, preventing unfair pricing and payment discrimination when legal tender becomes difficult to obtain.

Accompanied a new draft, see H5450
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Bill Summary · H 5138

Legislative bill overview

H 5138 addresses consumer protections related to the scarcity and circulation of low-value coins and currency in Massachusetts. The bill establishes regulatory frameworks to prevent exploitation when certain denominations become scarce or difficult to obtain in everyday commerce. It aims to protect consumers from unfair pricing practices or forced acceptance of substitute payment methods when traditional low-value legal tender is unavailable.

Why is this important

As coin shortages have periodically affected U.S. commerce—particularly following the 2020 pandemic—consumers and businesses have faced disruptions in making exact change and conducting small transactions. This bill addresses a real market gap where scarcity can be exploited through inflated prices for rolls of coins, restricted access, or discriminatory payment policies. It establishes Massachusetts-specific protections that could serve as a model for other states facing similar currency circulation challenges.

Potential points of contention

  • Scope and enforceability: Defining what constitutes "scarcity" and determining at what point protections trigger could be administratively complex and subject to dispute.
  • Business burden: Retailers and financial institutions may resist requirements to maintain coin/currency reserves or limits on pricing, arguing it imposes unfair operational costs during legitimate supply constraints.
  • Federal preemption questions: Currency and legal tender are primarily federal matters; legal challenges could arise regarding Massachusetts' authority to regulate low-value tender circulation independently.

Compiled from official sources — confirm details with the bill’s official record.

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