What's happening
This bill amends New York law to further restrict zone pricing of gasoline based on geographic location and clarifies legal remedies.
Why it matters
Expands liability for zone pricing. The bill clarifies that both wholesalers and dealers are prohibited from adjusting gasoline prices at retail outlets based on geographic location, not just wholesalers as in previous law. This broadens accountability and could lead to more uniform pricing across regions.
Refines the legal definition of zone pricing. By specifying that zone pricing is the establishment of price differences based on geography, without regard to terminal price or actual additional costs (like transport or taxes), the bill closes loopholes that allowed for geographically-based price discrimination under the guise of market competition.
Grants private right to seek injunctions. The legislation enables injured wholesalers or dealers to file lawsuits to stop unlawful zone pricing practices, even though they cannot seek monetary damages. This increases legal avenues for challenging unfair pricing, potentially deterring violators through court-ordered injunctions.
Aims to address consumer inequity. The legislative findings emphasize that artificial price manipulation (zone pricing) creates unfair fuel cost disparities among consumers and regions, reinforcing the policy’s intent to promote price fairness and market integrity statewide.
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Who cares
Motor fuel wholesalers
The bill would redefine prohibited zone pricing around retail outlets supplied by the same terminal, accounting for posted terminal prices, replacement and transportation costs, and taxes.
Motor fuel dealers
The bill would extend the zone-pricing prohibition to dealers supplying dealer-operated retail outlets and let injured dealers and wholesalers sue to stop violations, but not recover damages.
Drivers buying gasoline
The bill targets location-based pricing differences that injure competition, which its legislative findings identify as raising fuel prices for some consumers and creating regional inequities.
Headline styles
Stop Gas Price Discrimination
Plain English, a few words. Used as the page title.
Sponsors
11 Co-sponsors
History
- Referred to consumer protection
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.66
- Returned to assembly
- Died in senate
- Referred to rules
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.371
- Reported
- Reported referred to codes
Show 1 earlier action
- Referred to economic development
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.
Stop Gas Price Discrimination
In Senate Committee · Consumer Protection · Sponsor Kenneth P. LaValle
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1618 A. 979
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 10, 2017
IN SENATE -- Introduced by Sens. LAVALLE, GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
IN ASSEMBLY -- Introduced by M. of A. THIELE, BRINDISI, COOK, GALEF, JAFFEE, JENNE, McKEVITT, RAIA, SALADINO, SANTABARBARA, ZEBROWSKI -- Multi-Sponsored by -- M. of A. ABBATE, BLANKENBUSH, CUSICK, DenDEKK- ER, HAWLEY, HOOPER, PALUMBO, RA -- read once and referred to the Committee on Economic Development
AN ACT to amend the general business law, in relation to zone pricing of gasoline, and to amend chapter 579 of the laws of 2008, amending the general business law relating to zone pricing of gasoline, in relation to zone pricing for retail motor fuel based on geographic location
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 399-ee of the general business law is relettered paragraph (a-1) and a new paragraph (a) is added to read as follows:
(a) "Additional costs" means all replacement and transportation costs and taxes incurred.
§ 2. Paragraph (g) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(g) "Relevant geographic market" means the geographic area [of effective competition] which is supplied by the same terminal facility.
§ 3. Paragraph (m) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(m) "Zone pricing" means the [arbitrary] establishment of price differences based on the geographical location of the retail outlet within the relevant geographic market, [based on] without regard to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02092-01-7
S. 1618 2 A. 979
posted terminal price [or] and any additional costs where the effect is to injure competition.
§ 4. Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
2. No wholesaler or dealer shall engage in zone pricing with respect to any motor fuel of like grade or quality, which is supplied to dealer operated retail outlets.
§ 5. Subdivision 3 of section 399-ee of the general business law is amended by adding a new undesignated paragraph to read as follows:
Notwithstanding any right of action to the attorney general as provided in this section, a wholesaler or dealer who has been injured by reason of a violation of this section may bring an action in his or her own name to enjoin such unlawful act, however, no damages of any nature shall be recoverable in such action.
§ 6. Section 2 of chapter 579 of the laws of 2008, amending the general business law relating to zone pricing of gasoline, is amended to read as follows:
§ 2. Legislative findings and intent. The legislature hereby finds and declares that for the past several years motor fuel prices have greatly fluctuated. In some cases, price fluctuations are caused by natural market conditions. In other cases, fluctuations result from artificial manipulation of the market. One such artificial pricing manipulation is zone pricing. Zone pricing is the setting of different wholesale prices for retail motor fuel [that operate in different geographic areas] based on geographic location. Zone pricing increases the price of retail motor fuel for certain consumers, leading to inequities among consumers and regions around the state. Therefore, the legislature hereby declares that while natural market occurrences may lead to price fluctuations, artificial changes in motor fuel prices unfairly harm many consumers around the state.
§ 7. This act shall take effect on the thirtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.