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For Immediate Release
September 19, 2005
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White Bill to
Fight Price Gouging Approved by Committee
Targets those who
would exploit disasters
Harrisburg – Legislation sponsored by state Sen.
Mary Jo White (R-21) to prevent price gouging during
and immediately after a state of disaster emergency
was approved today by the Senate Appropriations
Committee.
Senate Bill 450 will next be considered by the
full Senate.
The legislation would prohibit "unconscionably
excessive" pricing during a declared state of
disaster emergency and 30 days after. Drafted by
White in cooperation with state Attorney General Tom
Corbett, the measure gives the Attorney General the
authority to investigate possible price gouging and
imposes penalties on violators.
"Whether it's the result of a natural disaster,
labor strike or even an act of terrorism, there are
sometimes disruptions of the market that put sellers
in a position to charge grossly excessive prices to
consumers for goods or services they desperately
need," said White. "Passage of Senate Bill 450 will
send the message that we're simply not going to
tolerate that kind of exploitation in Pennsylvania."
The senator originally drafted the legislation in
response to price gouging reported in the wake of
the Sept. 11, 2001 terrorist attacks, and sponsored
similar legislation again in 2003. However, each
legislative session ended before the General
Assembly could act on the measure.
Under Senate Bill 450, pricing would be
considered "unconscionably excessive" if parties
within the chain of distribution (manufacturers,
suppliers, wholesalers, distributors or retailers)
increase prices by 20 percent or more over the
average price for the same goods or services
obtainable in the affected area in the seven days
prior to the state of emergency.
The law would not apply to price increases caused
by additional expenses -- such as replacement costs,
taxes and transportation. Business operators found
guilty of price gouging would face a penalty of up
to $10,000 per violation.
"We all understand the need to make a profit, but
there is a point at which earning an honest profit
crosses over to exploiting a tragedy or disaster.
When businesses cross that line, this bill will
provide a means to step in and put a stop to it,"
said White.
CONTACT: Leigh Ramsey (717) 787-9684
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