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History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to price gouging
In Assembly Committee · Consumer Affairs And Protection · Sponsor Edward Braunstein
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2825 REVISED 5/20/15
Title of bill
An act to amend the general business law, in relation to price gouging
Purpose or general idea of bill
To further define "unconscionably excessive price" in the context of price gouging.
Summary of specific provisions
Section 1 amends Section 396-r of the General Business law. The bill provides that during periods of abnormal disruption of the market for consumer goods and services vital and necessary for the health, safety and welfare. Of consumers, no party within the chain of distribution of such consumer goods shall offer to sell goods for an "unconscionably excessive price." Unconscionably excessive prices is further defined as,a.price that is excessive as compared to the price at which the good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency.
A price will be deemed excessive if the price exceeds, by at least 10%, the price at which the good "or service was sold immediately prior to the state of emergency. unless the price charged is because of additional costs imposed by the supplier or other costs of providing the good. In such situations, the price will be excessive if it represents 10% increase in the amount of markup from cost, compared to the markup customarily applied by the seller in the usual course of business immediately prior to the State of emergency.
Section 2 provides the effective date.
Justification
In the wake of Hurricane Sandy, gas stations sought. to capitalize on the gas shortage by gouging the price of gas, charging customers a much higher price than before the storm. Additionally, some hotels also allegedly engaged in price gouging, charging upwards of $300 for a room after the storm. Such nightly rates are not unusual in Manhattan and other tourist destinations; however, for residents of the outer boroughs, such prices were Up to triple the amount. they would have paid for a room prior to the storm.
While the Attorney General's office is currently investigating and imposing fines on such gas stations and other merchants for price gouging after the hurricane, it is difficult for consumers to determine whether price gouging is occurring because there is not an objective definition.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.