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Senate Passes White Bill to Fight Price Gouging
Businesses That Exploit
Disasters Would Face Up to $10,000 in Penalties
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.
"I am gratified by the
bipartisan support this bill has received. I think the tragic events in the
Gulf states have given the problem of price gouging more attention," said
White. "We've been working on legislation to combat this problem for several
years, and hopefully we'll be able to get this bill to the governor and signed
into law."
Senate Bill 450 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.
A state of disaster emergency
could be the result of a natural disaster, labor strike, act of terrorism, or
other event, the senator noted.
Under the measure, consumers
who suspect price gouging could file a complaint with the Attorney General's
Bureau of Consumer Protection. If an investigation verifies price gouging, the
business would face civil penalties of up to $10,000.
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.
"Disasters and emergencies usually bring out the
best in citizens and businesses. We band together and help our neighbors.
Unfortunately, there are exceptions, where such situations bring out the worst,"
said White. "This legislation will allow us to identify those who are
exploiting a crisis, and give the Attorney General the tools to go after them."
 
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