NY State Senate Bill S8189

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (12)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 06, 2020	signed chap.90
Jun 05, 2020	delivered to governor
May 27, 2020	returned to senate passed assembly ordered to third reading rules cal.30 substituted for a10270 referred to codes delivered to assembly passed senate ordered to third reading cal.648
May 26, 2020	reported and committed to rules
Apr 13, 2020	referred to consumer protection

Votes

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May 27, 2020 - floor Vote

S8189

floor

Aye

Nay

Absent

Excused

Abstained

May 26, 2020 - Consumer Protection committee Vote

S8189

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

May 24, 2020 - Rules committee Vote

S8189

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Co-Sponsors

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S8189 (ACTIVE) - Details

See Assembly Version of this Bill:: A10270
Law Section:: General Business Law
Laws Affected:: Amd §396-r, Gen Bus L

S8189 (ACTIVE) - Summary

Relates to price gouging; prohibits price gouging for essential medical supplies and services and any other essential goods and services used to promote the health or welfare of the public.

S8189 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8189

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the general business law, in relation to price gouging

 
PURPOSE:

This legislation would update New York's statute regarding the price
gouging of consumer goods by expanding it to cover essential medical
supplies and services and other goods or services used to promote the
health or welfare of the public.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends Section 396-r of the general business law
to broaden the application of New York's price gouging statute by apply-
ing it to goods and services vital and necessary for the health, safety
and welfare of consumers or the general public, rather than simply to
consumer goods and services.

Section 1 also broadens the definition of "goods and services" to
include essential medical supplies and services used for the care, cure,
mitigation, treatment or prevention of any illness or disease, and any
other goods and services used to promote the health or general welfare
of the public. The term used under current statute is "consumer goods
and services," and is limited to goods and services used, bought, or
rendered primarily for personal, family or household purposes.

Section 1 also adds language allowing a defendant to rebut a prima facie
case with evidence that the increase in the amount charged preserves the
margin of profit that the defendant received for the same goods or
services prior to the abnormal disruption of the market.

Section 1 also allows a court to impose a civil penalty for violations
of Section 396-r of up to $25,000 per violation, or three times the
gross receipts for the relevant goods or services, whichever is greater,
which would increase allowable penalties for egregious instances of
price gouging.  Finally, Section 1 allows the Attorney General to
promulgate rules and regulations to effectuate and enforce the
provisions of Section 396-r.

Section 2 provides the effective date.

 
JUSTIFICATION:

New York's current price gouging statute, which prohibits selling or
offering for sale consumer goods or services at an "unconscionably
excessive price" during an abnormal disruption of the market, is limited
in its application to goods or services "vital and necessary for the
health, safety, and welfare of consumers."

During the COVID-19 pandemic, we have seen countless instances of egre-
gious price gouging, particularly of medical supplies such as hand sani-
tizer, face masks, bandages, medical-grade apparel, and other crucial
medical supplies that are desperately needed by our hospitals and other
health care facilities.

These examples have illustrated ways to strengthen our existing price
gouging statute, namely by broadening its application to any goods and
services vital for the health, safety, and welfare of the general
public, specifically applying it to medical supplies and services used
to treat, cure, or prevent disease or illness, and authorizing the
Attorney General to pursue increased penalties against those trying to
profit off of others' misfortune.

This legislation would be a strong deterrent to individuals seeking to
use a pandemic or other emergency to enrich themselves at the expense of
the general public and the health care workers who are fighting to keep
us safe, at great personal danger to themselves.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S8189 (ACTIVE) - Bill Text download pdf


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

                                  8189

                            I N  S E N A T E

                             April 13, 2020
                               ___________

Introduced  by  Sen. HOYLMAN -- 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 price gouging

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

  Section  1.  Section  396-r of the general business law, as amended by
chapter 510 of the laws of 1998, subdivision 4 as amended by chapter 224
of the laws of 2008, is amended to read as follows:
  § 396-r. Price gouging. 1. Legislative findings and  declaration.  The
legislature  hereby  finds that during periods of abnormal disruption of
the market caused by strikes, power failures, severe shortages or  other
extraordinary  adverse  circumstances,  some parties within the chain of
distribution of [consumer] goods have taken unfair advantage of [consum-
ers] THE PUBLIC by  charging  grossly  excessive  prices  for  essential
[consumer] goods and services.
  In  order to prevent any party within the chain of distribution of any
[consumer] goods from taking unfair advantage of [consumers] THE  PUBLIC
during abnormal disruptions of the market, the legislature declares that
the  public  interest  requires that such conduct be prohibited and made
subject to civil penalties.
  2. During any abnormal disruption of the market for  [consumer]  goods
and  services  vital and necessary for the health, safety and welfare of
consumers OR THE GENERAL PUBLIC, no party within the chain  of  distrib-
ution  of  such [consumer] goods or services or both shall sell or offer
to sell any such goods or services or both for an amount  which  repres-
ents  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]  INCLUDE  (A)  CONSUMER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD16097-03-0

S. 8189                             2

GOODS  AND  SERVICES  used,  bought  or rendered primarily for personal,
family  or  household  purposes,  (B)  ESSENTIAL  MEDICAL  SUPPLIES  AND
SERVICES USED FOR THE CARE, CURE, MITIGATION, TREATMENT OR PREVENTION OF
ANY  ILLNESS  OR DISEASE, AND (C) ANY OTHER ESSENTIAL GOODS AND SERVICES
USED TO PROMOTE THE HEALTH OR WELFARE OF THE PUBLIC.   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 another when
the product sold was located in the state prior to the  sale.  [Consumer
goods]  GOODS  and  services  shall also include any repairs made by any
party within the chain of distribution of [consumer] goods on  an  emer-
gency basis as a result of such abnormal disruption of the market.
  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;  or  (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:
  (i) the amount charged represents a gross disparity between the  price
of  the  goods or services which were the subject of the transaction and
their value measured by the price at  which  such  [consumer]  goods  or
services  were  sold  or  offered for sale by the defendant in the usual
course of business immediately  prior  to  the  onset  of  the  abnormal
disruption of the market; or
  (ii)  the  amount charged grossly exceeded the price at which the same
or similar goods or services were readily obtainable [by  other  consum-
ers] in the trade area.
  (C)  A  defendant  may rebut a prima facie case with evidence that (1)
THE INCREASE IN THE AMOUNT CHARGED PRESERVES THE MARGIN OF  PROFIT  THAT
THE  DEFENDANT  RECEIVED  FOR  THE  SAME  GOODS OR SERVICES PRIOR TO THE
ABNORMAL DISRUPTION OF THE MARKET OR (2) additional costs not within the
control of the defendant were imposed on the defendant for the goods  or
services.
  4.  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 twenty-
five thousand dollars PER VIOLATION OR THREE TIMES  THE  GROSS  RECEIPTS
FOR  THE  RELEVANT  GOODS  OR  SERVICES, WHICHEVER IS GREATER and, where
appropriate, order restitution to aggrieved [consumers] PARTIES.
  5. THE ATTORNEY GENERAL MAY PROMULGATE SUCH RULES AND  REGULATIONS  AS
ARE NECESSARY TO EFFECTUATE AND ENFORCE THE PROVISIONS OF THIS SECTION.
  § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S8189

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

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Votes

May 27, 2020 - floor Vote

Floor Vote: May 27, 2020

May 26, 2020 - Consumer Protection committee Vote

Consumer Protection Committee Vote: May 26, 2020

May 24, 2020 - Rules committee Vote

Rules Committee Vote: May 24, 2020

Co-Sponsors

S8189 (ACTIVE) - Details

S8189 (ACTIVE) - Summary

S8189 (ACTIVE) - Sponsor Memo

S8189 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S8189

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Archive: Last Bill Status - Signed by Governor

Your Voice

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Votes

May 27, 2020 - floor Vote

Floor Vote: May 27, 2020

May 26, 2020 - Consumer Protection committee Vote

Consumer Protection Committee Vote: May 26, 2020

May 24, 2020 - Rules committee Vote

Rules Committee Vote: May 24, 2020

Co-Sponsors

S8189 (ACTIVE) - Details

S8189 (ACTIVE) - Summary

S8189 (ACTIVE) - Sponsor Memo

S8189 (ACTIVE) - Bill Text download pdf

Comments