Bill Text: NY A00680 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to price gouging; imposes criminal penalties for price gouging; removes language relating to the declaration of a state of emergency; increases civil penalty; authorizes a district attorney to enforce provisions.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2024-01-03 - referred to consumer affairs and protection [A00680 Detail]

Download: New_York-2023-A00680-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           680

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2023
                                       ___________

        Introduced  by  M. of A. DINOWITZ, COOK, SIMON, SEAWRIGHT -- Multi-Spon-
          sored by -- M. of A.  BRAUNSTEIN,  GLICK,  THIELE  --  read  once  and
          referred to the Committee on Consumer Affairs and Protection

        AN ACT to amend the general business law, in relation to price gouging

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 396-r of the general business law,  as  amended  by
     2  chapter 90 of the laws of 2020, is amended to read as follows:
     3    §  396-r.  Price gouging. 1. Legislative findings and declaration. The
     4  legislature hereby finds that during periods of abnormal  disruption  of
     5  the  market caused by strikes, power failures, severe shortages or other
     6  extraordinary adverse circumstances, some parties within  the  chain  of
     7  distribution  of  goods  have  taken  unfair  advantage of the public by
     8  charging grossly excessive prices for essential goods and services.
     9    In order to prevent any party within the chain of distribution of  any
    10  goods  from  taking  unfair  advantage  of  the  public  during abnormal
    11  disruptions of the market, the  legislature  declares  that  the  public
    12  interest  requires  that  such conduct be prohibited and made subject to
    13  civil and criminal penalties.
    14    2. During any abnormal disruption of the market for goods and services
    15  vital and necessary for the health, safety and welfare of  consumers  or
    16  the  general  public,  no party within the chain of distribution of such
    17  goods or services or both shall sell or offer to sell any such goods  or
    18  services or both for an amount which represents an unconscionably exces-
    19  sive   price.  For  purposes  of  this  section,  the  phrase  "abnormal
    20  disruption of the market" shall mean any change in the  market,  whether
    21  actual  or  imminently  threatened,  resulting  from  stress of weather,
    22  convulsion of nature, failure or shortage of  electric  power  or  other
    23  source of energy, strike, civil disorder, war, military action, national
    24  or  local  emergency,  or  other  cause of an abnormal disruption of the
    25  market [which results in the declaration of a state of emergency by  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00614-01-3
        A. 680                              2

     1  governor]. For the purposes of this section, the term goods and services
     2  shall  include  (a) consumer goods and services used, bought or rendered
     3  primarily for personal, family  or  household  purposes,  (b)  essential
     4  medical  supplies  and  services  used  for  the care, cure, mitigation,
     5  treatment or prevention of any illness or disease,  and  (c)  any  other
     6  essential  goods  and  services used to promote the health or welfare of
     7  the public. This prohibition shall apply to all parties within the chain
     8  of  distribution,  including  any  manufacturer,  supplier,  wholesaler,
     9  distributor  or  retail  seller of goods or services or both sold by one
    10  party to another when the product sold was located in the state prior to
    11  the sale. Goods and services shall also include any repairs made by  any
    12  party within the chain of distribution of goods on an emergency basis as
    13  a result of such abnormal disruption of the market.
    14    3.  Whether  a  price is unconscionably excessive is a question of law
    15  for the court.
    16    (a) The court's determination that a violation  of  this  section  has
    17  occurred  shall  be  based on any of the following factors: (i) that the
    18  amount of the excess in price is unconscionably extreme;  or  (ii)  that
    19  there  was  an  exercise  of unfair leverage or unconscionable means; or
    20  (iii) a combination of both factors in subparagraphs  (i)  and  (ii)  of
    21  this paragraph.
    22    (b)  In  any proceeding commenced pursuant to subdivision four of this
    23  section, prima facie proof that a violation of this section has occurred
    24  shall include evidence that:
    25    (i) the amount charged represents a gross disparity between the  price
    26  of  the  goods or services which were the subject of the transaction and
    27  their value measured by the price at which such goods or  services  were
    28  sold  or  offered for sale by the defendant in the usual course of busi-
    29  ness immediately prior to the onset of the abnormal  disruption  of  the
    30  market; or
    31    (ii)  the  amount charged grossly exceeded the price at which the same
    32  or similar goods or services were readily obtainable in the trade area.
    33    (c) A defendant may rebut a prima facie case with  evidence  that  (1)
    34  the  increase  in the amount charged preserves the margin of profit that
    35  the defendant received for the same  goods  or  services  prior  to  the
    36  abnormal disruption of the market or (2) additional costs not within the
    37  control  of the defendant were imposed on the defendant for the goods or
    38  services.
    39    4. Any person who violates the provisions of  this  section  shall  be
    40  guilty of a violation.
    41    5.  Where  a  violation of this section is alleged to have occurred, a
    42  district attorney may file an  accusatory  instrument  with  a  criminal
    43  court  within the judicial district in which such violations are alleged
    44  to have occurred, and the attorney general may apply in the name of  the
    45  People of the State of New York to the supreme court of the State of New
    46  York  within  the judicial district in which such violations are alleged
    47  to have occurred, on notice of five days,  for  an  order  enjoining  or
    48  restraining  commission  or continuance of the alleged unlawful acts. In
    49  any such proceeding, the court shall impose a civil penalty in an amount
    50  not to exceed twenty-five thousand dollars per violation or three  times
    51  the  gross  receipts  for  the  relevant goods or services, whichever is
    52  greater and, where appropriate, order restitution to aggrieved parties.
    53    [5.] 6. The attorney general may promulgate such rules and regulations
    54  as are necessary to  effectuate  and  enforce  the  provisions  of  this
    55  section.
    56    § 2. This act shall take effect immediately.