×

Bill Would Impose Large Fine For Price Gouging

Those found to be price gouging on medical supplies during a public health emergency could find themselves on the receiving end of a big fine under legislation proposed in the state Legislature.

Assemblywoman Nily Rozic, D-Flushing, proposes in A.10159 to amend the state’s General Business Law to ad a section on price gouging. Companion legislation has been introduced in the state Senate by Sen. Brad Hoylman, D-New York City, with a host of co-sponsors.

Anytime the governor makes a state declaration of a disaster emergency, no manufacturer, supplier, wholesaler, distributor or retail seller of consumer medical supplies will be able to sell those supplies for an amount “which represents an unconscionably excessive price” during the emergency.

Rozic defines “unconscionably excessive price” to be an amount more than 10% the price charged by the seller immediately before the emergency was declared. Those accused of price gouging could rebut an allegation of price gouging if they have evidence that additional costs not within the defendant’s control were imposed.

The law includes a civil penalty not to exceed $25,000 and, possibly, restitution if a business or individual is found guilty of price gouging on medical supplies during a time of emergency.

“During a public health emergency, it is imperative that New Yorkers’ access to health-preserving and possibly life-saving consumer medical supplies not be impeded by opportunistic actors throughout the distribution chain seeking to profit from the emergency. Under this newly-created section of the General Business Law, manufacturers, distributors, retailers and the public would be on notice that a price increase of more than 10% during a declared public health emergency carries a presumption of being unconscionably excessive, and therefore illicit price gouging,” Hoylman wrote in his legislative justification.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
   

Starting at $2.99/week.

Subscribe Today