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White Bill to Fight Price
Gouging Approved by Committee
Targets Those Who Would Exploit Disasters
HARRISBURG -- Legislation sponsored by state Sen. Mary Jo White (R-21) to
prevent price gouging during and immediately after a state
of disaster emergency was approved today by the Senate
Appropriations Committee.
Senate Bill 450
will next be considered by the full Senate.
The legislation
would prohibit "unconscionably excessive" pricing during a
declared state of disaster emergency and 30 days after.
Drafted by White in cooperation with state Attorney General
Tom Corbett, the measure gives the Attorney General the
authority to investigate possible price gouging and imposes
penalties on violators.
"Whether it's the
result of a natural disaster, labor strike or even an act of
terrorism, there are sometimes disruptions of the market
that put sellers in a position to charge grossly excessive
prices to consumers for goods or services they desperately
need," said White. "Passage of Senate Bill 450 will send the
message that we're simply not going to tolerate that kind of
exploitation in Pennsylvania."
The senator
originally drafted the legislation in response to price
gouging reported in the wake of the Sept. 11, 2001 terrorist
attacks, and sponsored similar legislation again in 2003.
However, each legislative session ended before the General
Assembly could act on the measure.
Under Senate Bill
450, pricing would be considered "unconscionably excessive"
if parties within the chain of distribution (manufacturers,
suppliers, wholesalers, distributors or retailers) increase
prices by 20 percent or more over the average price for the
same goods or services obtainable in the affected area in
the seven days prior to the state of emergency.
The law would not
apply to price increases caused by additional expenses --
such as replacement costs, taxes and transportation.
Business operators found guilty of price gouging would face
a penalty of up to $10,000 per violation.
"We all understand
the need to make a profit, but there is a point at which
earning an honest profit crosses over to exploiting a
tragedy or disaster. When businesses cross that line, this
bill will provide a means to step in and put a stop to it,"
said White.
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