PRINTER'S NO. 397
No. 386 Session of 2003
INTRODUCED BY M. WHITE, CORMAN, TOMLINSON, RAFFERTY, KUKOVICH,
WAGNER, LOGAN, EARLL, LAVALLE, MUSTO, ERICKSON, PUNT, ORIE,
ROBBINS, COSTA, LEMMOND, TARTAGLIONE, WOZNIAK, KITCHEN AND
RHOADES, MARCH 3, 2003
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 3, 2003
AN ACT
1 Prohibiting price gouging; and imposing penalties.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Price Gouging
6 Act.
7 Section 2. Purpose.
8 The General Assembly finds and declares as follows:
9 (1) In an economic market, there are periods of
10 disruption of the market which cause an uneven flow of supply
11 of consumer goods. During these periods, consumer demand
12 outweighs supply, sometimes heavily.
13 (2) These periods of disruption result from many
14 factors, including extreme weather conditions, depletion of
15 stockpiles, labor strikes, civil disorder, natural or manmade
16 emergencies or disasters and military action.
1 (3) During these periods, parties selling consumer goods
2 and services to the consumer sometimes take unfair advantage
3 of consumers in this Commonwealth by charging unnecessary
4 grossly excessive prices, or price gouging.
5 (4) To prevent this, the General Assembly should
6 prohibit price gouging and impose penalties on violators.
7 Section 3. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Consumer goods or services." Those items used, bought or
12 rendered primarily for personal, family or household purposes.
13 "Seller." A party that sells goods or services to consumers.
14 Section 4. Price gouging prohibited.
15 (a) General rule.--During a state of disaster emergency
16 declared by the Governor pursuant to the provisions of 35
17 Pa.C.S. § 7301(c) (relating to general authority of Governor), a
18 seller of consumer goods or services may not sell or offer to
19 sell the goods to consumers or provide or offer to provide the
20 services to consumers at a price which is excessive.
21 (b) Determination of "excessive."--A price is excessive if
22 the following are true:
23 (1) The amount charged represents a gross disparity
24 between the price of the consumer goods or services and
25 either of the following:
26 (i) The price at which the goods or services were
27 sold or offered for sale by the seller in the usual
28 course of business seven days immediately prior to the
29 state of disaster emergency.
30 (ii) The price at which the same or similar consumer
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1 goods or services are readily obtainable by other buyers
2 in the trade area.
3 (2) The disparity is not substantially attributable to
4 additional costs to the seller in connection with the sale of
5 the consumer goods or services, including replacement costs,
6 taxes and transportation costs incurred by the seller.
7 Section 5. Investigation.
8 (a) Authority.--The Bureau of Consumer Protection in the
9 Office of Attorney General shall investigate any complaints
10 received concerning violations of this act. If, after
11 investigating any complaint, the Attorney General finds that
12 there has been a violation of this act, the Attorney General may
13 bring an action to impose a civil penalty and to seek other
14 relief, including injunctive relief, under the act of December
15 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices
16 and Consumer Protection Law.
17 (b) Procedure.--Prior to the institution of a civil action,
18 the Attorney General is authorized to require the attendance and
19 testimony of witnesses and the production of documents. For this
20 purpose the Attorney General may issue subpoenas, examine
21 witnesses and receive evidence. If a person objects to or
22 otherwise fails to comply with a subpoena or request for
23 testimony, the Attorney General may file in Commonwealth Court
24 an action to enforce the subpoenas or request. Notice of hearing
25 of the action and a copy of all pleadings shall be served upon
26 the person who may appear in opposition.
27 (c) Confidentiality.--Any testimony taken or material
28 produced shall be kept confidential by the Attorney General
29 except to the extent he may use information in a judicial
30 proceeding or if the disclosure is authorized by the court for
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1 good cause shown or confidentiality is waived by the person
2 being investigated and by the person who has testified, answered
3 interrogatories or produced materials.
4 (d) Restitution.--An aggrieved consumer is entitled to
5 restitution from a seller whose conduct violates the provisions
6 of this act.
7 Section 6. Effective date.
8 This act shall take effect in 60 days.
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