PRINTER'S NO. 1829
No. 1396 Session of 2000
INTRODUCED BY KASUNIC, MELLOW, MUSTO, O'PAKE, STOUT, BODACK,
COSTA, KUKOVICH, STAPLETON, WAGNER, WOZNIAK, LAVALLE, HUGHES,
FUMO, TARTAGLIONE, BOSCOLA, SCHWARTZ, KITCHEN, WILLIAMS AND
BELAN, MARCH 27, 2000
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 27, 2000
AN ACT
1 Providing for 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 Price Gouging
6 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." Any change in the
17 market, whether actual or imminently threatened, resulting from
18 stress 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 and services." Those used, bought or
29 rendered primarily for personal, family or household purposes.
30 "Unconscionably excessive price." Whether a price is
20000S1396B1829 - 2 -
1 unconscionably excessive is a question of law for the court. The
2 court's determination shall be based on the following factors:
3 (1) The amount of the excess in price is unconscionably
4 extreme.
5 (2) There was an exercise of unconscionable means or
6 unfair leverage.
7 Section 4. General rule.
8 During any abnormal disruption of the market for consumer
9 goods and services vital and necessary for the health, safety
10 and welfare of consumers, no party within the chain of
11 distribution of such consumer goods or services, or both, shall
12 sell or offer to sell any such goods or services, or both, for
13 an amount which represents an unconscionably excessive price.
14 Such prohibition shall apply to all parties within the chain of
15 distribution, including any manufacturer, supplier, wholesaler,
16 distributor or retail seller of consumer goods or services, or
17 both.
18 Section 5. Violation.
19 Where a violation of this section is alleged to have
20 occurred, the Attorney General may apply in the name of the
21 people of this Commonwealth for an order enjoining or
22 restraining the commission or continuance of the alleged
23 unlawful activity.
24 Section 6. Penalty.
25 The penalty for a violation of this section shall be $10,000
26 and, where appropriate, the court may order restitution to the
27 aggrieved consumers.
28 Section 7. Effective date.
29 This act shall take effect in 60 days.
C20L12SFL/20000S1396B1829 - 3 -