Robbins: Senate Passes Legislation to Fight Price Gouging

Businesses that exploit disasters would face up to $10,000 in penalties

Harrisburg – Legislation co-sponsored by State Senator Bob Robbins (R-50) to prohibit price gouging during and immediately after a state of disaster emergency was passed by the Senate today.

Robbins said the legislation would prohibit "unconscionably excessive" pricing during a declared state of disaster emergency and 30 days after. Drafted in cooperation with state Attorney General Tom Corbett, the measure would give the Attorney General the authority to investigate possible price gouging and impose penalties on violators.

A state of disaster emergency could be the result of a natural disaster, labor strike, act of terrorism, or other event, the senator noted.

"Emergencies bring out the best in most people. However, there are always some who will seek to take advantage of others," said Robbins. "The legislation is designed to discourage price gouging from happening, and enforcing penalties on violators when it does occur."

Under the measure, consumers who suspect price gouging could file a complaint with the Attorney General's Bureau of Consumer Protection. If an investigation turns up price gouging, the business would face civil action of up to $10,000 in penalties for each violation.

Under Senate Bill 450, pricing would be considered "unconscionably excessive" if parties within the chain of distribution (manufacturers, suppliers, wholesalers, distributors or retailers) increase prices by 20 percent or more over the average price for the same goods or services available in the affected area a week prior to the state of emergency.

The law would not apply to price increases caused by additional expenses -- such as replacement costs, taxes and transportation.

"I certainly understand the need for businesses to recoup their costs and make a reasonable profit. This bill is not aimed at them. It targets business operators who seek to exploit a disaster and take advantage of consumers when times are difficult," said Robbins.

Senate Bill 450 was sent to the House of Representatives for consideration.

CONTACT: Nate Silcox (717) 787-1322