Makes it a felony to price gouge prescriptions or pharmaceuticals in time of a shortage.
Impact
If enacted, HB H7160 would create a legal framework that allows the governor or the President to declare a market emergency, making it unlawful to sell vital drugs at excessively high prices. The bill outlines a maximum duration for such declarations, noting that they would be effective for six months but could be renewed if necessary. It aims to prevent sellers from taking unfair advantage of consumers during critical shortages, which could significantly affect public health and well-being. Violators of the law could face severe penalties, including felony charges and substantial fines.
Summary
House Bill H7160 is a legislative measure introduced in Rhode Island aimed at addressing the issue of price gouging for prescription drugs during market shortages. The bill proposes an amendment to the existing commercial law by adding a new chapter that specifically prohibits the practice of charging unreasonably high prices for vital drugs during periods of declared market emergencies. The rationale behind the bill is rooted in the recognition of the essential nature of many pharmaceutical drugs that are critical for maintaining public health, particularly in times when shortages can occur due to various factors, including national emergencies.
Contention
During discussions surrounding HB H7160, various stakeholders may express differing views on its implications. Proponents argue that the bill is a necessary step to protect consumers from exploitation during health crises and to ensure that life-saving medications remain accessible. Conversely, some industry representatives may raise concerns about the potential burdens placed on pharmaceutical companies and distributors, arguing that stringent regulations might complicate supply chains and discourage their responsiveness in times of need. Additionally, the bill's definition of 'unreasonably excessive pricing' and associated penalties may raise questions about enforcement and the balance between consumer protection and market dynamics.