Texas Senate Bill SB1643

Texas 2019 - 86th Regular

Caption

Relating to the deceptive trade practice of charging exorbitant or excessive prices for necessities during a declared disaster.

Impact

Under SB1643, any price increase of 20 percent or more than the average price in the 60 days prior to a disaster declaration will be considered exorbitant unless justifiable by direct costs incurred by the seller. This serves to provide consumers with protection against unfair pricing policies during emergencies, supporting the principle of consumer rights and fair trade practices. This change is expected to significantly impact businesses that sell essential goods during disasters, enforcing compliance with pricing regulations to deter opportunistic behavior.

Summary

SB1643 addresses the issue of price gouging during declared disasters by establishing clear definitions and criteria for what constitutes excessive pricing of necessary goods. The bill aims to protect consumers from exorbitant or excessive prices for necessities such as food, medicine, and fuel, particularly during times of crisis when these items are in high demand. By amending the Texas Business and Commerce Code, the legislation aims to instate penalties for businesses that take advantage of vulnerable consumers during emergencies.

Contention

Notably, the bill has spurred discussions regarding the balance between protecting consumers and ensuring that businesses can maintain operational viability during crises. Proponents argue that consumer protection is paramount, especially in vulnerable situations, while opponents raise concerns about the potential impact on businesses that may be facing increased costs from suppliers. Furthermore, there might be debates around how effectively the enforcement of these regulations can be managed and the implications for local economies during disasters.