Relating To Commercial Law-- General Regulatory Provisions
Impact
If enacted, H7024 would insert a new chapter into Title 6 of the General Laws, focused on commercial law and general regulatory provisions. The bill would empower the attorney general to enforce penalties against violators, classifying price gouging as a felony that could result in up to five years of imprisonment and fines reaching $10,000. This measure would enhance regulatory oversight of drug pricing, particularly in times of market shortages, reinforcing consumer protection and ensuring fair access to necessary medications.
Summary
House Bill H7024 is a legislative proposal aimed at prohibiting price gouging on prescription drugs during declared market emergencies or shortages. Specifically, the bill seeks to address unethical pricing practices that may arise when essential pharmaceuticals are in short supply, particularly those necessary for treating serious health conditions. The act, when enforced, would impose strict penalties on individuals or entities that attempt to charge excessively high prices, thereby protecting consumers from exploitation during critical times.
Contention
The bill's implementation could foster debate regarding the balance between regulation and free market practices. On one side, proponents argue that such regulation is vital for safeguarding public health during emergencies, ensuring that critical drugs remain affordable. Conversely, opponents may contend that the bill could hinder market dynamics, potentially leading to undesired consequences such as reduced availability of drugs if suppliers respond negatively to the threat of criminal penalties. The notion of 'unreasonably excessive pricing' may also spark discussions around definitions and enforcement standards, complicating compliance for entities involved in drug distribution.