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History
- Referred to consumer protection
Full text
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Sponsor's memo
BILL NUMBER:S2076
Title of bill
An act to amend the general business law, in relation to the marketing of motor fuels
Purpose of the bill
The bill addresses a chronic and growing problem concerning pricing practices by petroleum refiners and distributors.
Summary of specific provisions
Refiners or distributors would be prohibited from selling motor fuel to any dealer at a price that exceeds ninety-four percent of the consumer retail price for the same or similar grade of fuel sold from a direct operated service station in the same area. Secondly, refiners or distributors would be prohibited from entering into any scheme or agreement to set, charge or maintain the retail price of motor fuel at any outlet which is not directly operated by the refiner or distributor. These provisions would be enforceable by the attorney general or by any dealer who may be injured by reason of any violation. The dealer would have a private right of action to recover actual damages or fifty dollars, whichever is greater. The court may increase the award of damages to an amount not to exceed three times the actual damages up to one thousand dollars if the court determines that the defendant willfully or knowingly violated the law. Additionally, the court may award reasonable attorney's fees to the prevailing party.
Effects of present law which this bill would alter
The bill amends section 199-a and creates a new section 199-o in the General Business Law.
Justification
The bill is important to independent petroleum business people who suffer great economic hardship as a result of inequitable pricing practices of company or large refiners and distributors. Many independent marketers are being squeezed out of the marketplace by the company owned stations and by the integrated refiner/marketer/retailer, who are frequently able to control the wholesale cost and the final customer retail price. This situation does not promote competition and job growth within our communities. Enactment of the legislation would establish a more level playing field within the petroleum industry.
Effective date
One hundred twenty days after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.