What's happening
This bill amends New York's price gouging law to add criminal penalties and allow district attorneys to prosecute violations.
Why it matters
Adds criminal penalties to price gouging. , meaning violators can now face not just civil fines but also criminal charges, raising the stakes for businesses and individuals who dramatically increase prices during emergencies.
Empowers local district attorneys to prosecute. price gouging cases, not just the state attorney general—this could lead to more aggressive and widespread enforcement at the county level, making it harder for violators to escape legal consequences.
Expands enforcement tools and potential deterrence. , as criminal prosecution—including the possibility of arrest and criminal records—may deter would-be violators more effectively than civil penalties alone.
Signals heightened consumer protection during crises. such as natural disasters or other market disruptions, aiming to ensure essential goods and services remain accessible and affordable when people are most vulnerable.
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Who cares
Retailers, wholesalers and manufacturers
The bill would remove the governor-declared emergency requirement for price-gouging restrictions and make violations punishable as a violation offense.
District attorneys
The bill would authorize them to file charges in criminal court for alleged price gouging within their judicial districts.
Consumers buying essential goods and services
The bill would extend price-gouging protections to abnormal market disruptions without requiring a governor-declared emergency, including emergency repairs resulting from those disruptions.
New York attorney general
The bill would retain the attorney general’s authority to seek injunctions, civil penalties of up to $25,000 and restitution alongside the new district attorney enforcement authority.
Headline styles
Ban Price Gouging
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
Companion bills
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.
Ban Price Gouging
In Senate Committee · Codes · Sponsor John E. Brooks
Ban Price Gouging
Assembly Floor Calendar · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2034
2017-2018 Regular Sessions
IN SENATE
January 11, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to price gouging
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 396-r of the general business law, as amended by chapter 510 of the laws of 1998, subdivision 4 as amended by chapter 224 of the laws of 2008, is amended to read as follows:
§ 396-r. Price gouging. 1. Legislative findings and declaration. The legislature hereby finds that during periods of abnormal disruption of the market caused by strikes, power failures, severe shortages or other extraordinary adverse circumstances, some parties within the chain of distribution of consumer goods have taken unfair advantage of consumers by charging grossly excessive prices for essential consumer goods and services.
In order to prevent any party within the chain of distribution of any consumer goods from taking unfair advantage of consumers during abnormal disruptions of the market, the legislature declares that the public interest requires that such conduct be prohibited and made subject to civil and criminal penalties.
2. During any 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 or services or both shall sell or offer to sell any such goods or services or both for an amount which represents an unconscionably excessive price. For purposes of this section, the phrase "abnormal disruption of the market" shall mean any change in the market, whether actual or imminently threatened, resulting from stress of weather, convulsion of nature, failure or shortage of electric power or other source of energy, strike, civil disorder, war, military action, national or local emergency, or other cause of an abnormal disruption of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00507-01-7
S. 2034 2
market [which results in the declaration of a state of emergency by the governor]. For the purposes of this section, the term consumer goods and services shall mean those used, bought or rendered primarily for personal, family or household purposes. This prohibition shall apply to all parties within the chain of distribution, including any manufacturer, supplier, wholesaler, distributor or retail seller of consumer goods or services or both sold by one party to another when the product sold was located in the state prior to the sale. Consumer goods and services shall also include any repairs made by any party within the chain of distribution of consumer goods on an emergency basis as a result of such abnormal disruption of the market.
3. Whether a price is unconscionably excessive is a question of law for the court.
(a) The court's determination that a violation of this section has occurred shall be based on any of the following factors: (i) that the amount of the excess in price is unconscionably extreme; or (ii) that there was an exercise of unfair leverage or unconscionable means; or (iii) a combination of both factors in subparagraphs (i) and (ii) of this paragraph.
(b) In any proceeding commenced pursuant to subdivision [four] five of this section, prima facie proof that a violation of this section has occurred shall include evidence that
(i) the amount charged represents a gross disparity between the price of the goods or services which were the subject of the transaction and their value measured by the price at which such consumer goods or services were sold or offered for sale by the defendant in the usual course of business immediately prior to the onset of the abnormal disruption of the market or
(ii) the amount charged grossly exceeded the price at which the same or similar goods or services were readily obtainable by other consumers in the trade area. A defendant may rebut a prima facie case with evidence that additional costs not within the control of the defendant were imposed on the defendant for the goods or services.
4. Any person who violates the provisions of this section shall be guilty of a violation.
5. Where a violation of this section is alleged to have occurred, a district attorney may file an accusatory instrument with a criminal court within the judicial district in which such violations are alleged to have occurred, and the attorney general may apply in the name of the People of the State of New York to the supreme court of the State of New York within the judicial district in which such violations are alleged to have occurred, on notice of five days, for an order enjoining or restraining commission or continuance of the alleged unlawful acts. In any such proceeding, the court shall impose a civil penalty in an amount not to exceed twenty-five thousand dollars and, where appropriate, order restitution to aggrieved consumers.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to price gouging
Purpose
To strengthen the price gouging law to allow local law enforcement to pursue those businesses that take unfair advantage of consumers during market disruptions.
Summary of provisions
Section 1 amends section 396-r of the general business law by establishing the crime of price gouging as a violation, authorizing district attorneys to pursue violations, and clarifying that no state of emergency need be declared by the governor for the enforcement of the price gouging law to be in effect during an abnormal disruption in the market
Read the full memo (736 words)
Section 2 establishes an immediate effective date.
Existing law
General Business Law § 396-r prohibits any party within the chain of distribution of any consumer goods from selling or offering to sell such goods of services for an amount that represents an unconscionably excessive price during an abnormal disruption of the market for such goods and services. Defines "abnormal disruption of the market" to include any change, whether actual or imminently threatened, but requires that it be one that results in the declaration of a state of emergency by the Governor.
Justification
Following hurricanes such as Katrina, Rita, and Sandy, gasoline prices rose far beyond anything justified by the market disruption. During such abnormal disruption of the market caused by extraordinary adverse circumstances like a hurricane, parties within the chain of distribution of consumer goods have taken unfair advantage of consumers by charging grossly excessive prices for essential consumer goods and services. In order to prevent any party within the chain of distribution of any consumer goods from taking unfair advantage of consumers during abnormal disruptions of the market, the public interest requires that such conduct be prohibited and made subject to civil penalties and criminal sanctions.
During any 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 or services or both shall sell or offer to sell any such goods or services or both for an amount which represents an unconscionably excessive price.
Whether a price is unconscionably excessive remains a question of law for the Court. This bill applies to all parties within the chain of distribution, including any manufacturer, supplier, wholesaler, distributor or retail seller of goods (including gasoline) both sold by one party to another when the product sold was located in the state prior to the sale. It also clarifies that no emergency declaration by the Governor is necessary in order for law enforcement to commence an action pursuant to this statute.
In every corner of the state, calls have been received from consumers who believe that the prices they are paying at the pump are being unscrupulously inflated. We must give law enforcement the tools to pursue those who attempt to illegally profit and seek severe penalties from those who are found to have violated the law. This bill adds a strong enforcement tool for local prosecutors to help curb price gouging at the pump.
By bolstering the price gouging law, the state is ensuring that we will pursue those who attempt to illegally profit and seek severe penalties from those who are found to have violated the law. Any seller in the chain of distribution who prices goods well above the average level for a given area has some explaining to do. We must avoid the kinds of behavior we saw immediately following 9/11 and the 2005 hurricanes, when some service station owners drastically increased the pump price because of unfounded supply fears, and some motorists engaged in panic buying. We must ensure that the proper enforcement mechanisms are in place to deter price gouging during current and future crises. There must be zero tolerance of people breaking the law during an emergency.
Legislative history
2016: S1122/A6032 - REFERRED TO CONSUMER PROTECTION/ advanced to third reading 2015: S1122/A6032 - REFERRED TO CONSUMER PROTECTION/ reported referred to codes 2013-2014: S238 - REFERRED TO CONSUMER PROTECTION 2011-2012: S2023 - REFERRED TO CONSUMER PROTECTION 2009-2010: S4094 (Schneiderman) - REFERRED TO CONSUMER PROTECTION 2007-2008: S2347 (Schneiderman) - REFERRED TO CONSUMER PROTECTION 2005-2006: S5985 (Schneiderman)/A9112 - REFERRED TO CONSUMER PROTECTION
Fiscal implications
None.
Local fiscal implication
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.