PRICE GOUGING ACT
Act of Oct. 31, 2006, P.L. 1210, No. 133 Cl. 12
AN ACT
Prohibiting price gouging; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Price Gouging
Act.
Section 2. Purpose.
The General Assembly finds and declares as follows:
(1) In an economic market there are periods of
disruption of the market which cause an uneven flow of supply
of consumer goods. During these periods, consumer demand
outweighs supply, sometimes heavily.
(2) These periods of disruption result from many
factors, including extreme weather conditions, depletion of
stockpiles, labor strikes, civil disorder, natural or manmade
emergencies or disasters and military action.
(3) During these periods, parties involved in the sale
and resale of consumer goods and services sometimes take
unfair advantage of consumers in this Commonwealth by
charging unconscionably excessive prices, or price gouging.
(4) To prevent this, the General Assembly should
prohibit price gouging and impose penalties on violators.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Chain of distribution." All parties involved in the sale
and resale of consumer goods and services, including any
manufacturer, supplier, wholesaler, distributor or retail
seller.
"Consumer goods or services." Those items used, bought or
rendered primarily for personal, family or household purposes.
"Replacement cost." The term includes:
(1) acquisition costs;
(2) costs that are a result of a contract where consumer
goods or services are priced on a formula that references
published market prices;
(3) the actual cost of replacing goods or services being
sold; or
(4) the reasonably contemplated cost of replacing goods
or services being sold based on information available at the
time of the increase in price.
"Unconscionably excessive." A price is unconscionably
excessive when the amount charged represents a gross disparity
between the price of the consumer goods or services and the
price at which the consumer goods or services were sold or
offered for sale within the chain of distribution in the usual
course of business seven days immediately prior to the state of
disaster emergency.
Section 4. Price gouging prohibited.
(a) Prohibition.--During and within 30 days of the
termination of a state of disaster emergency declared by the
Governor pursuant to the provisions of 35 Pa.C.S. § 7301(c)
(relating to general authority of Governor), it shall be a
violation of this act for any party within the chain of
distribution of consumer goods or services or both to sell or
offer to sell the goods or services within the geographic region
that is the subject of the declared emergency for an amount
which represents an unconscionably excessive price.
(b) Evidence of unconscionably excessive price.--It is prima
facie evidence that a price is unconscionably excessive if,
during and within 30 days of the termination of a state of
disaster emergency, parties within the chain of distribution
charge a price that exceeds an amount equal to or in excess of
20% of the average price at which the same or similar consumer
goods or services were obtainable in the affected area during
the last seven days immediately prior to the declared state of
emergency.
(c) Nonapplicability.--
(1) The provisions of this section shall not apply if
the increase in price is due to a disparity that is
substantially attributable to additional costs that arose
within the chain of distribution in connection with the sale
of consumer goods or services, including replacement costs,
credit card costs, taxes and transportation costs.
(2) The provisions of this act shall not apply to the
sale of goods or services sold by a person pursuant to a
tariff or rate approved by a Federal or Commonwealth agency
with power and authority over sales of such goods or
services.
(d) Price reduction.--A person selling consumer goods or
services who receives any price reduction, after an increase in
his cost which is substantially attributable to costs that arose
within the chain of distribution as set forth in subsection (c),
may rebut an allegation of selling at an unconscionably
excessive price if he reduces the price by a like amount within
a reasonable period, not to exceed seven days, of acquiring the
consumer good or service at such reduced price.
(e) Notification.--A trade association, corporation,
partnership, person or other entity may register an agent for
the purpose of being notified when the Governor declares and
ceases a state of emergency. The Governor or his designee is
responsible for notifying the registered agents upon the
declaration and cessation of the state of emergency. Lack of
notification or the failure to receive notification of the
declaration and cessation of an emergency shall not be a defense
with respect to any violation of this act.
Section 5. Investigation.
(a) Authority.--The Bureau of Consumer Protection in the
Office of Attorney General shall investigate any complaints
received concerning violations of this act. If, after
investigating any complaint, the Attorney General finds that
there has been a violation of this act, the Attorney General may
bring an action to impose a civil penalty up to $10,000 for each
violation and to seek other relief, including injunctive relief,
restitution and costs under the act of December 17, 1968
(P.L.1224, No.387), known as the Unfair Trade Practices and
Consumer Protection Law.
(b) Procedure.--Prior to the initiation of a civil action,
the Attorney General is authorized to require the attendance and
testimony of witnesses and the production of documents. For this
purpose the Attorney General may issue subpoenas, examine
witnesses and receive evidence. If a person objects to or
otherwise fails to comply with a subpoena or request for
testimony, the Attorney General may file in Commonwealth Court
or any court of record of this Commonwealth an action to enforce
the subpoenas or request. Notice of hearing of the action and a
copy of all pleadings shall be served upon the person who may
appear in opposition.
(c) Confidentiality.--Any testimony taken or material
produced shall be kept confidential by the Attorney General
except to the extent that such information may be used in a
judicial proceeding or the disclosure is authorized by the court
for good cause shown or confidentiality is waived by the person
being investigated and by the person who has testified, answered
interrogatories or produced materials.
Section 6. Effective date.
This act shall take effect in 60 days.
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