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For Immediate Release
October 25, 2006

White's Anti-Price Gouging Bill Sent to Governor for Enactment

Drafted with Attorney General Corbett, protects consumers during, after disaster emergencies.

Harrisburg – State Sen. Mary Jo White (R-21) today lauded final legislative approval of a measure that will protect Pennsylvania consumers from price gouging during and after a state of disaster emergency.

The Houses of Representatives on Monday followed Senate action and approved House Bill 2001, which was amended in the Senate to contain the language of a price gouging bill sponsored by Senator White. The bill will be sent to the governor to be signed into law.

"The vast majority of business operators are generous and helpful when disaster strikes, but those few who seek to exploit such hardship will now find themselves having to answer for it," said White, who worked with Attorney General Tom Corbett to draft her legislation. The measure gives the Attorney General the authority to investigate possible price gouging and imposes penalties on violators.

Attorney General Corbett applauded Senator White and the General Assembly for enacting this important legislation which will provide greater protection for consumers and will place businesses on notice as to what constitutes price gouging.

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. Drastic increases in gasoline prices in the Gulf States following Hurricane Katrina focused greater public attention on the problem.

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.

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

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.

"When people are trying to deal with a disaster emergency, the last thing they need is to get socked by a business that's hiking prices to take advantage of the situation. Especially when it comes to basic necessities," said White.  "We shouldn't prevent anyone from making an honest dollar, but when disaster hits, people are supposed to come together for the community. That's the American way."