Assembly Bill A10410

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10410
 
                           I N  A S S E M B L Y
 
                                May 4, 2020
                                ___________
 
 Introduced  by  M.  of  A.  GARBARINO  --  read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to price  gouging,
   fraud,  and  deceptive  acts  involving  medical supplies related to a
   public health emergency
 
   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:
   §  396-RRR.  PRICE  GOUGING;  MEDICAL  SUPPLIES DURING A PUBLIC HEALTH
 EMERGENCY. 1. FOR THE PURPOSES OF  THIS  SECTION,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "PUBLIC HEALTH EMERGENCY" SHALL MEAN A PERIOD OF TIME DURING WHICH
 THE GOVERNOR HAS MADE A STATE DECLARATION OF DISASTER EMERGENCY PURSUANT
 TO SECTION TWENTY-EIGHT OF THE EXECUTIVE LAW.
   (B)  "CONSUMER  GOODS  AND SERVICES" SHALL MEAN ANY GOODS AND SERVICES
 VITAL AND NECESSARY FOR THE HEALTH, SAFETY AND WELFARE OF CONSUMERS.
   2. NO MANUFACTURER, SUPPLIER, WHOLESALER, DISTRIBUTOR, OR RETAIL SELL-
 ER OF CONSUMER GOODS AND SERVICES OR ANY OTHER INDIVIDUAL,  CORPORATION,
 PARTNERSHIP,  JOINT VENTURE, OR BUSINESS ENTITY WHO SELLS CONSUMER GOODS
 AND SERVICES SHALL:
   (A) SELL OR OFFER FOR SALE ANY SUCH CONSUMER GOODS OR SERVICES FOR  AN
 AMOUNT  WHICH  REPRESENTS  AN  UNCONSCIONABLY  EXCESSIVE  PRICE DURING A
 PUBLIC HEALTH EMERGENCY; OR
   (B) KNOWINGLY DEFRAUD AN INDIVIDUAL IN RELATION TO THE QUALITY, PRICE,
 QUANTITY, OR ANY OTHER CHARACTERISTIC OF ANY CONSUMER GOODS OR SERVICES.
   3. WHERE A VIOLATION OF THIS SECTION IS ALLEGED TO HAVE OCCURRED,  THE
 ATTORNEY GENERAL MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW
 YORK  TO  THE SUPREME COURT OF THE STATE OF NEW YORK WITHIN THE JUDICIAL
 DISTRICT IN WHICH SUCH VIOLATIONS  ARE  ALLEGED  TO  HAVE  OCCURRED,  ON
 NOTICE OF FIVE DAYS, FOR AN ORDER ENJOINING OR RESTRAINING COMMISSION OR
 CONTINUANCE  OF  THE  ALLEGED UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE
 COURT SHALL IMPOSE A CIVIL PENALTY IN AN AMOUNT NOT TO  EXCEED  SEVENTY-
 FIVE  THOUSAND  DOLLARS  AND,  WHERE  APPROPRIATE,  ORDER RESTITUTION TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16061-03-0

 A. 10410                            2
 
 AGGRIEVED CONSUMERS.  IN ANY SUCH PROCEEDING WHERE THE COURT  FINDS  THE
 VIOLATION  OCCURRED WILLFULLY, INTENTIONALLY, OR DELIBERATELY, THE COURT
 SHALL IMPOSE A CIVIL PENALTY NOT TO EXCEED THE GREATER  OF  SEVENTY-FIVE
 THOUSAND DOLLARS OR THREE TIMES THE AMOUNT OF ACTUAL DAMAGES.
   §  2. The general business law is amended by adding a new section 350-
 f-2 to read as follows:
   § 350-F-2. DECEPTIVE ACTS INVOLVING CORONAVIRUS DISEASE  2019  (COVID-
 19). 1. AS USED IN THIS SECTION:
   (A)  "MEDICAL  SUPPLIES" SHALL MEAN GOODS AND PRODUCTS USED, BOUGHT OR
 RENDERED FOR THE CARE, CURE, MITIGATION,  TREATMENT,  OR  PREVENTION  OF
 ILLNESSES OR DISEASES INCLUDING, BUT NOT BE LIMITED TO: BANDAGES, GAUZE,
 OR  DRESSINGS;  HAND  SANITIZER,  ANTIBIOTIC  OINTMENT, RUBBING ALCOHOL,
 HYDROGEN PEROXIDE, SALINE SOLUTION; MEDICAL OR SURGICAL  MASKS;  MEDICAL
 OR SURGICAL GLOVES; TISSUES; OVER-THE-COUNTER MEDICATIONS; AND ANY OTHER
 GOODS OR PRODUCTS IDENTIFIED IN EMERGENCY REGULATIONS PROMULGATED BY THE
 COMMISSIONER OF THE DEPARTMENT OF HEALTH DURING A PUBLIC HEALTH EMERGEN-
 CY.
   (B)  "SUBSTANDARD  MEDICAL SUPPLIES" SHALL MEAN MEDICAL SUPPLIES WHICH
 FAIL TO MEET QUALITY STANDARDS, SPECIFICATIONS, OR BOTH.
   (C) "FALSIFIED MEDICAL SUPPLIES" SHALL MEAN MEDICAL SUPPLIES THAT:
   (I) APPEAR TO BE, WITHOUT AUTHORIZATION, IDENTICAL TO, OR SUBSTANTIAL-
 LY SIMILAR TO, GENUINE MEDICAL SUPPLIES OF THE MANUFACTURER;  OR
   (II) ARE HELD OUT TO BE HELPFUL IN ANY  WAY  AGAINST  THE  CORONAVIRUS
 DISEASE 2019 (COVID-19) WITHOUT HAVING A MEDICAL BASIS FOR SUCH CLAIMS.
   (D)  "PERSON"  SHALL  MEAN ANY PERSON, PARTNERSHIP, FIRM, CORPORATION,
 COMPANY, TRUST, ASSOCIATION, OR OTHER ENTITY OR ANY  AGENT  OR  EMPLOYEE
 THEREOF.
   2. (A) IT SHALL BE UNLAWFUL FOR ANY PERSON TO KNOWINGLY:
   (I)  MAKE,  OFFER  TO  DISTRIBUTE OR DISTRIBUTE, OFFER TO SELL OR SELL
 SUBSTANDARD OR FALSIFIED MEDICAL SUPPLIES;
   (II) OBTAIN PATIENT INFORMATION FOR CORONAVIRUS DISEASE  2019  (COVID-
 19) TESTING AND THEN USE SUCH INFORMATION TO FRAUDULENTLY BILL FOR OTHER
 TESTS AND PROCEDURES;
   (III)  SEEK  DONATIONS FOR NON-EXISTENT CHARITABLE ORGANIZATIONS WHICH
 PURPORT TO BE INVOLVED IN ANY WAY WITH CORONAVIRUS DISEASE 2019  (COVID-
 19);
   (IV)  VIOLATES  SECTION  THREE  HUNDRED NINETY-B OF THIS CHAPTER WHILE
 USING THE CORONAVIRUS DISEASE 2019 (COVID-19) IN ANY ELECTRONIC MESSAGE;
 OR
   (V) CREATES OR OPERATES A WEBSITE OR  APPLICATION  WHICH  PURPORTS  TO
 PROVIDE INFORMATION ON THE CORONAVIRUS DISEASE 2019 (COVID-19) BUT WHICH
 ACTUALLY  IS USED TO STEAL FROM OR EXTORT THE WEBSITE'S OR APPLICATION'S
 USERS.
   (B) ANY VIOLATION OF THIS SECTION SHALL CONSTITUTE A DECEPTIVE ACT  OR
 PRACTICE  WITHIN THE MEANING OF SECTION THREE HUNDRED FORTY-NINE OF THIS
 ARTICLE.
   § 3. This act shall take effect immediately.