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For Immediate Release
October 18, 2006

White: Senate Approves Price Gouging Legislation;
Measure Would Protect Consumers During, After Disasters

Harrisburg – The State Senate today approved legislation to protect Pennsylvania consumers from price gouging during and after a state of disaster emergency, according to Senator Mary Jo White (R-Venango).  The Senate unanimously approved House Bill 2001, which is identical to legislation that Senator White sponsored, and the Senate approved last year. 

"This legislation will not only protect consumers but also give law enforcement officials the tools they need to crack down on those who attempt to take advantage of Pennsylvania residents for their own gain," White said.  "Price gouging is always unconscionable, but it is particularly devastating during and after disasters when people are most vulnerable."

White has been pushing for price-gouging legislation for a number of years.  She said drastic increases in gasoline prices in the Gulf States following Hurricane Katrina focused greater public attention on the problem.  She added that the bill covers all goods and services, not just petroleum products.

The legislation would prohibit "unconscionably excessive" pricing during a declared state of disaster emergency and 30 days after within the geographic region that is the subject of the declared emergency.

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. 

A state of disaster emergency could be the result of a natural disaster, labor strike, act of terrorism, or other event, the senator noted. 

Consumers who suspect price gouging could file a complaint with the Attorney General's Bureau of Consumer Protection. If an investigation verifies price gouging, the business would face civil penalties of up to $10,000. 

The senator originally drafted the legislation in response to price gouging reported in Ohio 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. 

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. 

"Disasters and emergencies usually bring out the best in citizens and businesses. We band together and help our neighbors. Unfortunately, there are exceptions, where such situations bring out the worst," said White.  "This legislation will allow us to identify those who are exploiting a crisis, and give the Attorney General the tools to go after them."