PRINTER'S NO. 51
No. 40 Session of 2003
INTRODUCED BY KASUNIC, BOSCOLA, KUKOVICH, LAVALLE, RAFFERTY,
COSTA, KITCHEN, LOGAN, MELLOW, MUSTO, O'PAKE, RHOADES,
SCHWARTZ, TARTAGLIONE AND WOZNIAK, JANUARY 24, 2003
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 24, 2003
AN ACT
1 Prohibiting certain price gouging; and imposing penalties.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Protection
6 from Price Gouging Act.
7 Section 2. Purpose.
8 The General Assembly hereby finds and declares as follows:
9 (1) In the economic market, there are periods of
10 abnormal disruption of the market which cause an uneven flow
11 of supply, which cannot meet with the demand of the
12 consumers.
13 (2) These periods of abnormal disruption result from
14 many factors, including changes in energy source supplies,
15 failure of energy power or shortage of food supply due to
16 extreme weather conditions, labor strikes, civil disorder,
1 national or local emergencies or military action.
2 (3) During these periods of abnormal disruption, the
3 market parties within the chain of distribution of consumer
4 goods and services may take unfair advantage of consumers of
5 this Commonwealth by charging grossly excessive prices for
6 essential and necessary consumer goods and services.
7 (4) To prevent any party within the chain of
8 distribution from taking unfair advantage of consumers of
9 this Commonwealth during periods of abnormal disruption in
10 the market, such activities shall be prohibited and violators
11 shall be subject to civil penalties.
12 Section 3. Definitions.
13 The following words and phrases when used in this act shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Abnormal disruption of the market." A change in the market,
17 whether actual or imminently threatened, resulting from stress
18 of weather, convulsion of nature, failure or shortage of
19 electric power or other source of energy, strike, civil
20 disorder, war, military action, national or local emergency or
21 other cause of an abnormal disruption of the market which
22 results in a declaration of a state of emergency by the
23 Governor.
24 "Chain of distribution." All parties involved in the sale
25 and resale of consumer goods and services, including any
26 manufacturer, supplier, wholesaler, distributor or retail
27 seller.
28 "Consumer goods or services." Goods or services used, bought
29 or rendered primarily for personal, family or household
30 purposes.
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1 Section 4. Price gouging prohibited.
2 (a) General rule.--During any abnormal disruption of the
3 market for consumer goods or services vital and necessary for
4 the health, safety and welfare of consumers, no party within the
5 chain of distribution of consumer goods or services, or both,
6 shall sell or offer to sell consumers goods or services, or
7 both, for an amount which represents an unconscionably excessive
8 price.
9 (b) Parties affected.--This section shall apply to any party
10 within the chain of distribution, including a manufacturer,
11 supplier, wholesaler, distributor or retail seller of consumer
12 goods or services, or both.
13 (c) Determination.--Whether a price is unconscionably
14 excessive is a question of law for the court. The court's
15 determination shall be based on the following factors:
16 (1) The amount of the excess in price is unconscionably
17 extreme.
18 (2) There was an exercise of unconscionable means or
19 unfair leverage.
20 Section 5. Injunctive relief.
21 Where a violation of this act is alleged to have occurred,
22 the Attorney General may apply in the name of the people of this
23 Commonwealth for an order enjoining or restraining the
24 commission or continuance of the alleged unlawful activity.
25 Section 6. Penalty.
26 The penalty for a violation of this section shall be $10,000
27 and, where appropriate, the court may order restitution to the
28 aggrieved consumers.
29 Section 7. Effective date.
30 This act shall take effect in 60 days.
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