Public Safety - Emergency Management - Price Gouging Consumer Protections
Impact
If enacted, SB565 will create new legal standards intended to protect consumers from price gouging during emergencies. The law mandates that individuals or businesses can only charge increased prices on essential goods if they can demonstrate that the price increase is directly attributable to additional costs imposed by suppliers or increases in labor costs. This measure aims to ensure that consumers are not exploited when they are most vulnerable during crises.
Summary
Senate Bill 565, titled 'Public Safety - Emergency Management - Price Gouging Consumer Protections', aims to establish protections for consumers during a state of emergency regarding the sale of essential goods and services. Specifically, the legislation prohibits sellers from raising prices on these goods and services by more than 10% above the highest price charged in the 60 days prior to the state of emergency declaration. This includes essential items such as food, fuel, medical supplies, and communication services.
Contention
During discussions regarding the bill, there may be notable points of contention related to the definitions of essential goods, the enforcement mechanisms for reported violations, and the possible negative impact on businesses that rely on higher prices to recover costs during emergencies. Some legislators may argue that strict price controls might discourage businesses from providing goods in emergency situations due to potential losses or liabilities associated with price limits.
Additional_points
The bill also requires the Secretary of State to establish an electronic notification system to inform the public when a state of emergency is declared and indicate the specific goods and services that fall under the protections of this legislation. This transparency effort is aimed at ensuring consumers are aware of their rights during such times of crisis.