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S2893Senate2019-2020 SessionSame asA1452

Let Consumers Sue Price Gougers

Official title

“Creates a private right of action for unlawful price gouging for injunctive relief and recovery of compensatory damages or $1000 whichever is greater”

Sponsor Brian KavanaghSD-26Affects Public Safety & Consumer Affairs
Status
In Senate Committee
Consumer Protection
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Consumer Protection

What's happening

This bill allows individuals harmed by price gouging in New York to sue for damages and attorneys' fees in addition to existing state enforcement.

Why it matters

  1. Empowers individuals directly. Instead of relying solely on government enforcement, this bill lets consumers who are victims of price gouging take direct legal action, giving them more immediate and personal recourse when harmed.

  2. Provides meaningful financial remedies. Victims can recover either their actual damages or a minimum of $1,000 (whichever is greater), plus up to $5,000 more if the violation was willful, which may serve as a stronger deterrent to businesses considering price gouging.

  3. Encourages legal action by covering attorney fees. By allowing courts to award reasonable attorneys' fees to successful plaintiffs, the bill reduces the financial barrier to suing, making it easier for harmed individuals to seek justice even if their losses are relatively small.

  4. Preserves broader legal rights. The bill explicitly states it does not limit any other rights or remedies under common law or other statutes, ensuring that individuals maintain all existing avenues for addressing harm from unfair pricing.

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Who cares

Headline styles

Let Consumers Sue Price Gougers

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Brian Kavanagh

Senator · Senate District 26

Chair, Housing, Construction And Community Development

No co-sponsors yet.

History

  1. Referred to consumer protection
  2. 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.

A1452Assembly

Let Consumers Sue Price Gougers

In Assembly Committee · Consumer Affairs And Protection · Sponsor Stacey Pheffer Amato

Impact 6 · Moderate0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2893

2019-2020 Regular Sessions

IN SENATE

January 30, 2019

Introduced by Sen. KAVANAGH -- 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 is amended by adding a new subdivision 5 to read as follows:

5. In addition to any right of action granted to the attorney general pursuant to this section, any person who has been injured due to any violation of this section may bring an action in his or her own name to enjoin such unlawful act or practice, an action to recover his or her compensatory damages or one thousand dollars, whichever is greater, or both. The court may, in its discretion, award the prevailing plaintiff in such action an additional award not to exceed five thousand dollars, if the court finds the defendant willfully violated the provisions of this section. The court may award reasonable attorneys' fees to a prevailing plaintiff. The provisions of this subdivision shall not limit the rights of an injured person under common law or any other law.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02179-01-9

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

The purpose of this bill is to grant citizens who are victims of illegal price gouging in times of emergency the right to directly sue the responsible party.

Summary of provisions

The bill inserts a new subdivision into the existing price gouging stat- ute (General Business Law Section 396-r) granting a private right of action to citizens who fall victim to price gouging in times of emergen- cy. The bill would provide for the possibility of injunctive relief, a minimum $1,000 damage claim and a discretionary additional award up to $5,000 for willful violations.

Justification

Presently, only the State Attorney General is empowered to bring legal action against violators of the price gouging statute. This bill would leave the Attorney General's powers in this regard intact, but would also permit individual victims of price gouging to sue the price gougers directly.

The events that occurred during the Great Ice Storm of 1998, which affected five northern counties in New York, demonstrate the need for this legislation. These counties were in a state of emergency, which placed the price gouging statute in effect in those areas. Nonetheless, reports from these northern counties indicated that, prices on every- thing from electrical generators to hotel space to milk and batteries increased dramatically in an attempt to take advantage of those suffer- ing from the disaster. Indeed, hundreds of complaints of price gouging were filed. By some accounts, prices were set at six times above normal.

For example, a $40 piece of cable was being sold for $240, C batteries were being offered at $11 a piece and one store was charging $995 for generators that are regularly priced at $690.

This example, along with documented instances of price gouging that have occurred since 1993, including gouging by certain hotels after the events of September 11, 2001, gouging by snowplow operators after a major snowstorm in Buffalo in December 2001, and gouging that occurred after Hurricane Katrina in 2005, demonstrate that the threat of enforce- ment by the Attorney General is not serving as an adequate deterrent.

Other states have recognized that a private right of action is necessary to effectively deter would-be price gougers. At least seven other states allow private plaintiffs to bring actions against those who engage in such activity.

Clearly, the current enforcement provisions of the price gouging statute are insufficient. Private citizens must be empowered to seek relief on

their own from those who seek to profit unjustly from others' misfor- tunes.

Legislative history

2018: S7087/A8133B - REFERRED TO CONSUMER PROTECTION/ advanced to third reading cal. 1005 2017: S489A/A8133B - AMENDED AND RECOMMITTED TO CONSUMER PROTECTION/ amended and recommitted to codes 2016: S4243/A120 - REFERRED TO CONSUMER PROTECTION/ advanced to third reading cal. 353 2015: S4243/A120 - REFERRED TO CONSUMER PROTECTION/ advanced to third reading cal. 86

Fiscal implications

None.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.