S07028 Summary:

BILL NOS07028
 
SAME ASSAME AS A05249
 
SPONSORBROOKS
 
COSPNSRCARLUCCI
 
MLTSPNSR
 
Amd §396-r, Gen Bus L
 
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.
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S07028 Actions:

BILL NOS07028
 
01/03/2018REFERRED TO CONSUMER PROTECTION
03/19/2018NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
05/08/2018REPORTED AND COMMITTED TO CODES
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S07028 Committee Votes:

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S07028 Floor Votes:

There are no votes for this bill in this legislative session.
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S07028 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7028
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 3, 2018
                                       ___________
 
        Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer 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 510 of the laws of 1998, subdivision 4 as amended by chapter 224
     3  of the laws of 2008, is amended to read as follows:
     4    § 396-r. Price gouging. 1. Legislative findings and  declaration.  The
     5  legislature  hereby  finds that during periods of abnormal disruption of
     6  the market caused by strikes, power failures, severe shortages or  other
     7  extraordinary  adverse  circumstances,  some parties within the chain of
     8  distribution of consumer goods have taken unfair advantage of  consumers
     9  by  charging  grossly  excessive prices for essential consumer goods and
    10  services.
    11    In order to prevent any party within the chain of distribution of  any
    12  consumer goods from taking unfair advantage of consumers during abnormal
    13  disruptions  of  the  market,  the  legislature declares that the public
    14  interest requires that such conduct be prohibited and  made  subject  to
    15  civil and criminal penalties.
    16    2. During any abnormal disruption of the market for consumer goods and
    17  services  vital  and  necessary  for  the  health, safety and welfare of
    18  consumers, no party within the chain of distribution  of  such  consumer
    19  goods  or services or both shall sell or offer to sell any such goods or
    20  services or both for an amount which represents an unconscionably exces-
    21  sive  price.  For  purposes  of  this  section,  the  phrase   "abnormal
    22  disruption  of  the market" shall mean any change in the market, whether
    23  actual or imminently  threatened,  resulting  from  stress  of  weather,
    24  convulsion  of  nature,  failure  or shortage of electric power or other
    25  source of energy, strike, civil disorder, war, military action, national
    26  or local emergency, or other cause of  an  abnormal  disruption  of  the
    27  market  [which results in the declaration of a state of emergency by the
    28  governor]. For the purposes of this section, the term consumer goods and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00507-01-7

        S. 7028                             2
 
     1  services shall  mean  those  used,  bought  or  rendered  primarily  for
     2  personal,  family or household purposes. This prohibition shall apply to
     3  all parties within the chain of distribution, including any  manufactur-
     4  er, supplier, wholesaler, distributor or retail seller of consumer goods
     5  or  services  or both sold by one party to another when the product sold
     6  was located in the state prior to the sale. Consumer goods and  services
     7  shall  also  include  any  repairs made by any party within the chain of
     8  distribution of consumer goods on an emergency basis as a result of such
     9  abnormal disruption of the market.
    10    3. Whether a price is unconscionably excessive is a  question  of  law
    11  for the court.
    12    (a)  The  court's  determination  that a violation of this section has
    13  occurred shall be based on any of the following factors:  (i)  that  the
    14  amount  of  the  excess in price is unconscionably extreme; or (ii) that
    15  there was an exercise of unfair leverage  or  unconscionable  means;  or
    16  (iii)  a  combination  of  both factors in subparagraphs (i) and (ii) of
    17  this paragraph.
    18    (b) In any proceeding commenced pursuant to subdivision [four] five of
    19  this section, prima facie proof that a violation  of  this  section  has
    20  occurred shall include evidence that
    21    (i)  the amount charged represents a gross disparity between the price
    22  of the goods or services which were the subject of the  transaction  and
    23  their  value  measured  by  the  price  at  which such consumer goods or
    24  services were sold or offered for sale by the  defendant  in  the  usual
    25  course  of  business  immediately  prior  to  the  onset of the abnormal
    26  disruption of the market or
    27    (ii) the amount charged grossly exceeded the price at which  the  same
    28  or  similar goods or services were readily obtainable by other consumers
    29  in the trade area. A  defendant  may  rebut  a  prima  facie  case  with
    30  evidence  that  additional costs not within the control of the defendant
    31  were imposed on the defendant for the goods or services.
    32    4.  Any person who violates the provisions of this  section  shall  be
    33  guilty of a violation.
    34    5.  Where  a  violation of this section is alleged to have occurred, a
    35  district attorney may file an  accusatory  instrument  with  a  criminal
    36  court  within the judicial district in which such violations are alleged
    37  to have occurred, and the attorney general may apply in the name of  the
    38  People of the State of New York to the supreme court of the State of New
    39  York  within  the judicial district in which such violations are alleged
    40  to have occurred, on notice of five days,  for  an  order  enjoining  or
    41  restraining  commission  or continuance of the alleged unlawful acts. In
    42  any such proceeding, the court shall impose a civil penalty in an amount
    43  not to exceed twenty-five thousand dollars and, where appropriate, order
    44  restitution to aggrieved consumers.
    45    § 2. This act shall take effect immediately.
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