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Health & Fitness

Price Gouging Legislation Will Protect Consumers in Future Disasters

Legislation passed the State Senate Wednesday afternoon aimed at combating price gouging for services in the aftermath of extreme weather events. The bill in a bipartisan vote of 31 to 5, passed because we believe it will protect consumers from predatory business practices.

Severe hurricanes and historic snowstorms have hammered the state over the past two years, creating higher demand for services like snow removal, flood abatement and the provision of lodging during extended power outages. Certain unscrupulous businesspeople have exploited vulnerable consumers by price gouging for these services.

In the aftermath of a hurricane, consumers are rightly concerned with repairing the damage that was done, and ensuring the safety of their families. Unfortunately, some people see an emergency as an opportunity to profit at another’s expense. That is wrong. We already ban price gouging during emergencies for goods, and this bill sensibly extends that protection to cover services as well.

Current laws prohibit price gouging for goods. The proposed legislation would expand the scope of consumer protection laws to prohibit price gouging for services. No one would be permitted to sell or offer to sell any goods or services for an “unconscionably excessive price” during a weather emergency.

Under the bill, explicit evidence of unconscionable pricing exists when there is a gross disparity between the price of a good or service during a weather emergency and its average price 30 days before the emergency began, or when the sale price for a good or service grossly exceeds the sale price to consumers in the trade area.

A defendant may challenge this evidence by showing that additional costs were incurred to acquire the goods or services and that these additional costs were out of the business owner’s control.

The bill now awaits further action in the House of Representatives.

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