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For Immediate Release
March 14, 2002

Sens. White, Corman Introduce Bill to Combat Price Gouging

Drafted bill with Attorney General Mike Fisher after reports of excessive pricing in wake of Sept. 11, 2001 attacks.

Harrisburg – Taking aim at sellers who exploit market disruptions in the wake of disasters, state Sen. Mary Jo White (R-21) and Sen. Jake Corman (R-34) have introduced legislation designed to prevent the price gouging reported in the wake of Sept. 11, 2001. 

The lawmakers drafted Senate Bill 1339 with the help of state Attorney General Mike Fisher.  The measure would prohibit grossly excessive pricing during periods of market disruptions – such as those resulting from natural disasters or terrorist attacks – and would impose penalties on violators.

“After the September 11th tragedy, several communities across the country experienced price gouging,” said White. “In Ohio – a state that has a price gouging statute -- the state investigated and prosecuted gas station owners who had drastically raised the price of gasoline. This legislation would help protect Pennsylvania consumers from such unscrupulous merchants.” 

Corman said such price gouging exploits tragedies at a time when members of communities should be rallying together.

“Price gouging in the aftermath of September 11th caused many consumers to contact me for assistance,” Corman said.  “What I found from speaking with Attorney General Fisher is that Pennsylvania lacks a strong law to discourage companies from taking advantage of consumers in this manner.  We must pass a law that will instill consumer confidence in the marketplace should another disaster occur.” 

Following the terrorist attack, White and Fisher discussed the need for a price gouging statute in Pennsylvania. Fisher then worked with the senators on drafting Senate Bill 1339 to protect Pennsylvania consumers from such price gouging. 

"This proposed new law will give my office the tools needed to aggressively prosecute those who believe a natural disaster or crisis is an opportunity to make a quick buck,” Fisher said. “I pledge my support to help make these specific acts of greed illegal in the Commonwealth.”

In addition to terrorist attacks, the periods of market disruption covered by the anti-price gouging bill include extreme weather conditions, labor strikes and civil disorder.

Sellers found guilty of price gouging would face a penalty of up to $1,000 per violation. The penalty is stiffer if the seller victimizes older residents – up to $3,000 per violation if the victim is age 60 or older.

“The vast majority of Americans – and Pennsylvanians – respond to disasters honorably. They help their neighbors, they give blood, or they take part in relief fundraisers,” said White.  “But some simply use the situation for financial gain. In normal times, taking advantage of a shaky market may be called ‘a good business move.’ But in the wake of tragedy, it’s called ‘exploitation.’ And we shouldn’t tolerate it in Pennsylvania.”

CONTACT: Leigh Ramsey (717) 787-9684