senate Bill S6514A

2011-2012 Legislative Session

Relates to price gouging of medicine

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 24, 2012 print number 6514a
May 24, 2012 amend and recommit to consumer protection
Feb 21, 2012 referred to consumer protection

S6514 - Details

See Assembly Version of this Bill:
A8801
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2013-2014: S2138, A3751
2015-2016: S4508, A6731
2017-2018: S5262, A7087
2019-2020: S256

S6514 - Summary

Relates to price gouging of medicine and provides for a private right of action for persons injured by the price gouging of medicine.

S6514 - Sponsor Memo

S6514 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6514

                            I N  S E N A T E

                            February 21, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to the price goug-
  ing of medicine

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivisions 2 and 4 of section 396-r of the general busi-
ness law, subdivision 2 as amended by chapter 510 of the  laws  of  1998
and  subdivision  4  as  amended by chapter 224 of the laws of 2008, are
amended to read as follows:
  2. During any abnormal disruption of the market  for  consumer  goods,
MEDICINE  and  services  vital  and necessary for the health, safety and
welfare of consumers, no party within the chain of distribution of  such
consumer  goods,  MEDICINE  or services [or both] shall sell or offer to
sell any such goods, MEDICINE or services [or both] for an amount  which
represents  an  unconscionably  excessive  price.  For  purposes of this
section, the phrase "abnormal disruption of the market" shall  mean  any
change in the market, whether actual or imminently threatened, resulting
from  stress  of  weather,  convulsion of nature, failure or shortage of
electric power or other source of energy, strike, civil  disorder,  war,
military  action,  national  or  local  emergency,  or other cause of an
abnormal disruption of the market which results in the declaration of  a
state  of  emergency  by the governor. For the purposes of this section,
the term consumer goods and services shall mean those  used,  bought  or
rendered  primarily  for  personal,  family  or household purposes. This
prohibition shall apply to all parties within the chain of distribution,
including any manufacturer, supplier, wholesaler, distributor or  retail
seller of consumer goods or services or both sold by one party to anoth-
er  when  the  product  sold was located in the state prior to the sale.
Consumer goods and services shall also include any repairs made  by  any
party within the chain of distribution of consumer goods on an emergency
basis  as  a  result  of  such  abnormal disruption of the market.   FOR
PURPOSES OF THIS SECTION, THE TERM "MEDICINE" SHALL MEAN  ANY  SUBSTANCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13546-06-2

S6514A (ACTIVE) - Details

See Assembly Version of this Bill:
A8801
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2013-2014: S2138, A3751
2015-2016: S4508, A6731
2017-2018: S5262, A7087
2019-2020: S256

S6514A (ACTIVE) - Summary

Relates to price gouging of medicine and provides for a private right of action for persons injured by the price gouging of medicine.

S6514A (ACTIVE) - Sponsor Memo

S6514A (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6514--A

                            I N  S E N A T E

                            February 21, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the general business law, in relation to the price goug-
  ing of medicine

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
396-rrr to read as follows:
  S  396-RRR.  PRICE  GOUGING  OF  MEDICINE. 1. FOR THE PURPOSES OF THIS
SECTION, "DRUG SUBJECT TO A SHORTAGE" SHALL MEAN  ANY  DRUG  OR  MEDICAL
PRODUCT  INTENDED  FOR HUMAN USE PUBLICLY REPORTED AS BEING SUBJECT TO A
SHORTAGE BY THE U.S.  FOOD  AND  DRUG  ADMINISTRATION  ON  ITS  WEBSITE,
PROVIDED,  HOWEVER, THAT A DRUG OR MEDICAL PRODUCT SHALL ONLY BE CONSID-
ERED A "DRUG SUBJECT TO A SHORTAGE" DURING THE PERIOD OF TIME THAT  SUCH
DRUG OR MEDICAL PRODUCT IS LISTED AS BEING SUBJECT TO A SHORTAGE ON SUCH
WEBSITE.
  2.  NO PARTY WITHIN THE CHAIN OF DISTRIBUTION OF ANY DRUG SUBJECT TO A
SHORTAGE SHALL SELL OR OFFER TO SELL ANY SUCH DRUG SUBJECT TO A SHORTAGE
FOR AN AMOUNT WHICH REPRESENTS AN UNCONSCIONABLY EXCESSIVE PRICE.
  3. WHETHER A PRICE IS UNCONSCIONABLY EXCESSIVE IS A  QUESTION  OF  LAW
FOR THE COURT.
  (A)  THE  COURT'S  DETERMINATION  THAT A VIOLATION OF THIS SECTION HAS
OCCURRED SHALL BE BASED ON ANY OF THE FOLLOWING FACTORS:
  (I) THAT THE AMOUNT OF THE EXCESS IN PRICE IS UNCONSCIONABLY EXTREME;
  (II) THAT THERE WAS AN EXERCISE OF UNFAIR LEVERAGE  OR  UNCONSCIONABLE
MEANS; OR
  (III)  A  COMBINATION OF BOTH FACTORS IN SUBPARAGRAPHS (I) AND (II) OF
THIS PARAGRAPH.
  (B) IN ANY PROCEEDING COMMENCED PURSUANT TO SUBDIVISION FOUR  OF  THIS
SECTION, PRIMA FACIE PROOF THAT A VIOLATION OF THIS SECTION HAS OCCURRED
SHALL INCLUDE EVIDENCE THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13546-10-2

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