New Jersey Assembly Bill A4513

New Jersey 2022-2023 Regular Session

• Introduced: 9/22/22
• Refer: 9/22/22

Caption

Prohibits excessive price increases during period of declared abnormal market disruption.

Impact

If enacted, A4513 would expand existing consumer protection laws to not only apply during declared states of emergency but also during abnormal market disruptions. It aims to foster a fair marketplace by imposing restrictions on price increases exceeding 10% of the pre-disruption price of essential goods. This change is particularly important for goods necessary for health and safety, which include items used to preserve life or comfort. The bill mandates that the Governor has the authority to declare an abnormal market disruption, ensuring that consumers are promptly informed about such declarations through the Division of Consumer Affairs.

Summary

Assembly Bill A4513 seeks to prohibit excessive price increases during periods of declared abnormal market disruptions, which may arise from natural or man-made emergencies, disasters, or outbreaks. The bill specifically caters to situations where these disruptions occur without a formal declaration of a state of emergency, recognizing that consumers in New Jersey could face significant harm from rapidly increasing prices of essential consumer goods. This legislative effort aims to protect individuals, businesses, hospitals, schools, and local governments from unjustified price hikes when market forces are rendered ineffective due to abnormal conditions.

Contention

The bill could potentially spark debates regarding market freedom and the limits of government intervention in pricing policies. Proponents may argue that such regulations prevent exploitative practices during crises, thereby safeguarding consumers. Opponents, however, might contend that price controls could disrupt normal supply and demand dynamics, leading to unintended shortages of goods and stifling marketplace innovation. It remains critical to assess how such regulations balance consumer protection with the need for a responsive and resilient market during times of stress.