Energy & Electric Utilities: 2005 Bills on Price Gouging

Energy and Electric Utilities

2005 Bills on Price Gouging

Illinois
Louisiana
Massachusetts

Mississippi

New Jersey

Pennsylvania

Tennesse

State

Summary

Status

Illinois

HB 5271
Provides that it is a violation of the Act to engage in motor fuel price gouging in response to the occurrence of a national disaster or State emergency, except where the sale is both an isolated and inadvertent incident. Provides that in certain instances it is not a violation of the Act to sell or advertise for sale motor fuel at a retail price that would constitute a below cost sale. Allows concessions of up to 5% of the motor fuel sale, provided that the concessions are not given by the motor fuel retailer or an affiliate, that the cost of the concessions are not borne by the motor fuel retailer or affiliate, and that the concessions do not reduce the pump price and net amount paid for the motor fuel at the time of the sale. Provides that if there is a concession that exceeds 5%, that otherwise meets the specified criteria, the motor fuel retailer is required to take certain actions to stop the excess portion of the concession. Provides that the Department of Revenue and the Attorney General shall have certain powers and duties under the Act. Establishes a Motor Fuel Cost Review Board. Provides the remedies and penalties for selling motor fuel below cost and price gouging.
In Committee as of 3/05

Louisiana

SB 162, Act No, 149

During a state of emergency as declared by the governor or as declared by the parish president, or during a named tropical storm or hurricane in or threatening the Gulf of Mexico, the value received for goods and services sold within the designated emergency area may not exceed the prices ordinarily charged for comparable goods and services in the same market area at, or immediately before, the time of the state of emergency. However, the value received may include reasonable expenses and a charge for any attendant business risk, in addition to the cost of the goods and services which necessarily are incurred in procuring the goods and services during the state of emergency.

Signed 8/15/05

Massachusetts

HB 3712

“Unconscionable price” an amount charged which represents a gross disparity between the price of the commodity or rental or lease of a dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility that is the subject of the offer or transaction and the average price at which that commodity or dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility was rented, leased, sold, or offered for rent or sale in the usual course of business during the 30 days immediately before a declaration of a state of emergency, and the increase in the amount charged is not attributable to additional costs incurred in connection with the rental or sale of the commodity or rental or lease of the dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility, or regional, national, or international market trends; or grossly exceeds the average price at which the same or similar commodity, dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility was readily obtainable in the trade area during the 30 days immediately before a declaration of a state of emergency, and the increase in the amount charged is not with rental or sale of the commodity or rental or lease of the dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility, or regional, national, or international market trends.

Governor shall determine that an emergency exists in respect to food or fuel or any other common necessity of life, including the providing of shelter, it shall be a violation for a person or his agent or employee to rent or sell or offer to rent or sell a commodity at an unconscionable price within the area for which the state of emergency is declared; or impose unconscionable prices for the rental or lease of a dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility within the area for which the state of emergency is declared. This prohibition remains in effect until the declaration expires or is terminated.

Upon a declaration of a state of disaster by the President, in which the disaster area includes all or a portion of the commonwealth it is unlawful and a violation of this article for a person or his agent or employee in this state to: rent or sell or offer to rent or sell a commodity at an unconscionable price within the area for which the state of disaster is declared; or impose unconscionable prices for the rental or lease of a dwelling unit, including a motel or hotel unit or other temporary lodging, or self-storage facility within the area for which the state of disaster is declared.

This prohibition remains in effect until the declaration expires or is terminated. A price increase approved by an appropriate government agency is not a violation of this section.

This section does not apply to sales by growers, producers, or processors of raw or processed food products, except for retail sales of those products to the ultimate consumer within the area of the declared state of emergency or disaster.

This section does not preempt the powers of local government, except that the evidentiary standards contained in this section are the sole evidentiary standards to be adopted by ordinance of a local government to restrict price escalation during a declared state of emergency of disaster.

In the event a local government declares a state of emergency or disaster in which the disaster area includes all or a portion of the area under the local government’s jurisdiction, and restricts price escalation during that emergency or disaster, the governmental entity must notify the Governor’s office of such declaration.

A violation of this section shall be punished by a fine of not more than $5,000 or by imprisonment for not more that 2½ years or both.

In Committee as of 4/05

Mississippi

HB 572

(a) Whenever, under the Mississippi Emergency Management Law, a state of emergency or a local emergency is declared to exist in this state, then the value received for all goods and services sold within the designated emergency area shall not exceed the prices ordinarily charged for comparable goods or services in the same market area at or immediately before the declaration of a state of emergency or local emergency. However, the value received may include: any expenses, the cost of the goods and services which are necessarily incurred in procuring such goods and services during a state of emergency or local emergency. The prices ordinarily charged for comparable goods or services in the same market area do not include temporarily discounted goods or services. The same market area does not necessarily mean a single provider of goods or services.

It shall be unlawful to sell gasoline below wholesale price or above the price ordinarily charged for gasoline in the market area at or immediately before the declaration of state or local emergency as described in paragraph (a) of this section.

(b) It shall be unlawful to sell gasoline below wholesale price or above the price ordinarily charged for gasoline in the market area at or immediately before the declaration of state or local emergency as described in paragraph (a) of this section.

     (3) Any person who knowingly and willfully violates subsection (2) of this section, when the value unlawfully received is Two Hundred Fifty Dollars ($250.00) or more, shall be guilty of a felony and upon conviction shall be punished by confinement for a term of not less than one (1) year nor more than five (5) years or a fine of not more than Five Thousand Dollars ($5,000.00), or both.

     (4) Any person who knowingly and willfully violates subsection (2) of this section, when the value unlawfully received is less than Two Hundred Fifty Dollars ($250.00), shall be guilty of a misdemeanor and upon conviction shall be fined not more than One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for a term not to exceed six (6) months, or both.

     (5) In addition to the criminal penalties prescribed in subsections (3) and (4), any knowing and willful violation of subsection (2) of this section shall be considered an unfair or deceptive trade practice subject to and governed by all the procedures and remedies available under the provisions of this chapter for enforcement of prohibited acts and practices contained therein.

Died in Committee 2/05 and 3/05

New Jersey

A3733

This bill makes it a crime of the fourth degree for any person to sell or offer to sell any goods or services during or within 180 days following a declared state of emergency or local disaster at a price of more than 10% above the price ordinarily charged for comparable goods or services immediately prior to the proclamation of emergency. The bill further provides that it is an affirmative defense to a prosecution under this bill if the increase in price was directly attributable to additional costs imposed on the seller by the supplier of the goods or directly attributable to additional costs for labor or materials used to provide the services. In those instances where the increase in price is attributable to additional costs imposed by the seller's supplier or additional costs of providing the goods or services during the state of emergency, the price shall represent no more than 10% above the total of the cost to the seller plus the markup customarily applied by the seller for that good or service in the usual course of business immediately prior to the onset of the state of emergency.

    In addition, this bill makes it a crime of the fourth degree for any contractor to sell or offer to sell any repair or reconstruction services used during an emergency cleanup for a price of more than 10% above the price ordinarily charged by the contractor for those services immediately prior to the declared state of emergency or local disaster. The bill further provides that it is an affirmative defense to a prosecution under this bill if the increase in price was directly attributable to any additional costs imposed on the contractor by his supplier or additional costs for labor or materials used to provide the service, provided that the price represents no more than 10% above the total cost to the contractor plus the markup customarily applied by the contractor for those goods and services in the usual course of business immediately prior to the onset of the state of emergency.

In Committee as of 1/05

Pennsylvania

SB 450

"Consumer goods or services." Those items used, bought or rendered primarily for personal, family or household purposes.

    "Excessive." A price is excessive if the following are true:

        (1) The amount charged represents a gross disparity between the price of the consumer goods or services and either of the following:

            (i) The price at which the goods or services were sold or offered for sale by the seller in the usual course of business seven days immediately prior to the state of disaster emergency.

            (ii) The price at which the same or similar consumer goods or services are readily obtainable by other buyers in the trade area.

        (2) The disparity is not substantially attributable to additional costs to the seller in connection with the sale of the consumer goods or services, including replacement costs, taxes and transportation costs incurred by the seller.

During a state of disaster emergency declared by the Governor a seller of consumer goods or services may not sell or offer to sell the goods to consumers or provide or offer to provide the services to consumers at a price which is excessive. The Bureau of Consumer Protection in the Office of Attorney General shall investigate any complaints received concerning violations of this act.

An aggrieved consumer is entitled to restitution from a seller whose conduct violates the provisions of this act.

In Committee as of 5/05

Tennessee

HJR 345

Requests the U.S. Congress to investigate the possible manipulation of gas prices and price-gouging by oil companies to protect the American public from economic hardship.

Signed by Governor 6/05

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