Relates to price gouging; defines unconscionably excessive price for the purposes of prohibiting price gouging during abnormal disruption of the market.
Summary
Bill S07345 aims to amend New York's General Business Law to strengthen regulations against price gouging during periods of abnormal market disruption. It defines 'abnormal disruption' as any significant market change due to events such as natural disasters, strikes, or emergencies declared by the governor. The bill prohibits the sale of essential goods and services at unconscionably excessive prices during such disruptions, establishing criteria for determining what constitutes an excessive price and outlining the responsibilities of all parties in the distribution chain.
Impact
If enacted, this bill will enhance consumer protection laws in New York by imposing stricter penalties on price gouging practices. It will affect manufacturers, suppliers, wholesalers, distributors, and retailers by holding them accountable for pricing during emergencies. The bill also empowers the Attorney General to enforce these provisions and seek civil penalties, thereby potentially reducing instances of price exploitation during crises.
Sentiment
The general sentiment around Bill S07345 appears to be supportive among consumer advocacy groups who argue that it is essential for protecting consumers during emergencies. However, there may be concerns from businesses regarding the implications of stricter regulations on pricing and the potential for increased scrutiny during market disruptions.
Contention
Notable points of contention include the definition of 'unconscionably excessive price' and the criteria for determining it, which some business representatives argue could be too vague or subjective. There may also be concerns about the burden of proof placed on businesses to justify price increases during emergencies, as well as the potential for penalties to impact their operations.
Relates to price gouging; defines unconscionably excessive price for the purposes of prohibiting price gouging during abnormal disruption of the market.
Includes for-hire transportation services in the prohibition on price gouging; provides that such prohibition shall apply to for-hire transportation services after the declaration of a state of emergency by the governor tied to an abnormal disruption of the market or upon notice from the governor, attorney general or the chief executive of any municipality of the state that an abnormal disruption of the market exists.
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.