PRINTER'S NO. 2771
No. 2001 Session of 2005
INTRODUCED BY BEYER, CIVERA, ALLEN, BAKER, BARRAR, BELARDI,
CALTAGIRONE, CAPPELLI, CAUSER, COHEN, CORNELL, DALLY, DeLUCA,
DeWEESE, J. EVANS, FAIRCHILD, FEESE, GODSHALL, GOOD, GOODMAN,
HARHART, HERMAN, HERSHEY, HESS, HICKERNELL, KENNEY,
MACKERETH, MAJOR, MARKOSEK, MARSICO, McILHATTAN, R. MILLER,
MUNDY, MUSTIO, O'NEILL, PALLONE, PAYNE, PETRARCA, PHILLIPS,
PICKETT, QUIGLEY, RAYMOND, READSHAW, REICHLEY, RUBLEY,
SANTONI, SATHER, SCAVELLO, SHANER, SIPTROTH, SOLOBAY,
R. STEVENSON, E. Z. TAYLOR, J. TAYLOR, TIGUE, TRUE, WATSON,
WILLIAMS, WILT, ZUG, B. SMITH, THOMAS, BLACKWELL, ROBERTS AND
WANSACZ, OCTOBER 13, 2005
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, OCTOBER 13, 2005
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
1 factors, including extreme weather conditions, depletion of
2 stockpiles, labor strikes, civil disorder, natural or manmade
3 emergencies or disasters and military action.
4 (3) During these periods, parties selling consumer goods
5 and services to the consumer sometimes take unfair advantage
6 of consumers in this Commonwealth by charging unnecessary
7 grossly excessive prices, or price gouging.
8 (4) To prevent this, the General Assembly should
9 prohibit price gouging and impose penalties on violators
10 throughout the entire chain of distribution.
11 Section 3. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Chain of distribution." All persons involved in the sale
16 and resale of consumer goods and services, including without
17 limitation any manufacturer, supplier, wholesaler, distributor
18 or retail seller.
19 "Consumer goods or services." Those items used, bought or
20 rendered primarily for personal, family or household purposes.
21 "Person." A natural person, corporation, trust, partnership,
22 incorporated or unincorporated association and any other legal
23 entity.
24 "Principally." Constituting more than 50% of an increased
25 price.
26 "Unconscionably excessive." A price is unconscionably
27 excessive if the following are true:
28 (1) The amount charged represents a gross disparity
29 between the price of the consumer goods or services and
30 either of the following:
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1 (i) The price at which the goods or services were
2 sold or offered for sale by the seller in the usual
3 course of business seven days immediately prior to the
4 earlier date stated by the Governor to be the effective
5 date of the state of disaster emergency or the date of
6 such declaration.
7 (ii) The price at which the same or similar consumer
8 goods or services are readily obtainable by other persons
9 in the trade area.
10 (2) The disparity is not principally attributable to the
11 additional costs to the person providing the consumer goods
12 or services to any other person, in connection with the sale
13 of the consumer goods or services, including replacement
14 costs, taxes and transportation costs incurred.
15 Section 4. Price gouging prohibited.
16 During a state of disaster emergency declared by the Governor
17 pursuant to the provisions of 35 Pa.C.S. § 7301(c) (relating to
18 general authority of Governor), and for 30 days immediately
19 following the expiration or termination of the disaster
20 emergency, no person in the chain of distribution of consumer
21 goods or services shall sell or offer to sell consumer goods or
22 services, or both, at an unconscionably excessive price.
23 Section 5. Investigation.
24 (a) Authority.--The Bureau of Consumer Protection in the
25 Office of Attorney General shall investigate any complaints
26 received concerning violations of this act. If, after
27 investigating any complaint, the Attorney General finds that
28 there has been a violation of this act, the Attorney General may
29 bring an action to impose a civil penalty and to seek other
30 relief, including injunctive relief, under the act of December
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1 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices
2 and Consumer Protection Law.
3 (b) Procedure.--Prior to the institution of a civil action,
4 the Attorney General is authorized to require the attendance and
5 testimony of witnesses and the production of documents. For this
6 purpose the Attorney General may issue subpoenas, examine
7 witnesses and receive evidence. If a person objects to or
8 otherwise fails to comply with a subpoena or request for
9 testimony, the Attorney General may file in Commonwealth Court
10 an action to enforce the subpoenas or request. Notice of hearing
11 of the action and a copy of all pleadings shall be served upon
12 the person who may appear in opposition.
13 (c) Confidentiality.--Any testimony taken or material
14 produced shall be kept confidential by the Attorney General
15 except to the extent he may use information in a judicial
16 proceeding or if the disclosure is authorized by the court for
17 good cause shown or confidentiality is waived by the person
18 being investigated and by the person who has testified, answered
19 interrogatories or produced materials.
20 (d) Restitution.--The Attorney General may seek to recover,
21 for the benefit of each aggrieved consumer, either the actual
22 monetary loss from each violation, or up to $500 in damages for
23 each violation, whichever is greater, from any person in the
24 chain of distribution whose conduct violates the provisions of
25 this act.
26 Section 6. Effective date.
27 This act shall take effect in 60 days.
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