Makes it a felony to price gouge prescriptions or pharmaceuticals in time of a shortage.
H5126 creates a new chapter in Rhode Island commercial law prohibiting price gouging of prescription drugs and biologics during a declared market emergency or market shortage. The bill defines key terms such as “vital drug,” “market shortage,” and “unreasonably excessive drug pricing,” and ties enforcement to a declaration by the governor or the President. Once such an emergency is declared, sellers of vital drugs may not charge prices that are deemed unreasonably excessive in light of pre-emergency pricing, added costs, risks, and broader market conditions.
The bill also establishes a framework for determining whether pricing is excessive, directing the attorney general to consider factors such as cost increases outside the seller’s control, supply risks, comparable prices in Rhode Island and New England, and market conditions. It requires the attorney general to consult annually with wholesalers, distributors, hospitals, manufacturers, patients, and other stakeholders and report back to the General Assembly on the pricing criteria. Emergency declarations under the bill last up to six months, may be renewed, and may end earlier by proclamation or legislative action.
If enacted, the bill would add a new consumer-protection and public-health enforcement tool to Rhode Island law by making excessive pricing of vital prescription drugs during shortages a felony punishable by up to five years in prison, a fine of up to $10,000, or both. It would also authorize the attorney general to seek injunctive relief in Superior Court and to enforce the chapter against violators in the drug supply chain, including sellers, wholesalers, and distributors. The measure would affect pharmaceutical pricing practices during declared emergencies and shortages, and it would create new statutory standards for evaluating drug prices under those conditions.
The available context suggests the bill is generally framed in supportive terms, with its stated purpose focused on protecting consumers and patients from unfair pricing during shortages of essential medicines. The bill’s caption and findings emphasize public health, cancer treatment, surgery, and life-threatening illness, indicating a strong consumer- and patient-protection rationale. No committee transcript or vote record is provided, so there is no recorded debate or formal vote sentiment to assess beyond the bill’s text and introduction.
The main points of potential contention are the scope of the emergency pricing restriction, the criminal penalty, and the discretion given to the attorney general to determine what counts as “unreasonably excessive” pricing. Pharmaceutical sellers, wholesalers, and distributors may object that the bill could penalize legitimate price increases caused by supply-chain disruptions, replacement costs, or other market forces beyond their control. Another possible issue is the reliance on a gubernatorial or presidential emergency declaration to trigger the law, which could raise questions about timing, enforcement, and how broadly the term “vital drug” should be applied.