Assembly Bill A2737

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2737
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 AN  ACT  to  amend the general business law, in relation to food product
   price gouging
 
   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
 369-aa to read as follows:
   § 369-AA. PRICE GOUGING; FOOD AND FOOD PRODUCTS. 1. (A) NO PARTY WITH-
 IN  THE  CHAIN  OF  DISTRIBUTION OF FOOD AND FOOD PRODUCTS SHALL SELL OR
 OFFER TO SELL ANY SUCH GOODS FOR AN AMOUNT WHICH  REPRESENTS  AN  UNCON-
 SCIONABLY EXCESSIVE PRICE.
   (B)  FOR  THE  PURPOSES  OF  THIS  SECTION,  THE  TERM  "FOOD AND FOOD
 PRODUCTS" SHALL INCLUDE ALL ARTICLES OF FOOD,  DRINK,  CONFECTIONERY  OR
 CONDIMENT,  WHETHER  SIMPLE, MIXED OR COMPOUND, USED OR INTENDED FOR USE
 BY HUMANS OR ANIMALS, AND SHALL ALSO INCLUDE ALL SUBSTANCES OR  INGREDI-
 ENTS TO BE ADDED TO FOOD FOR ANY PURPOSE.
   (C)  THIS  PROHIBITION  SHALL APPLY TO ALL PARTIES WITHIN THE CHAIN OF
 DISTRIBUTION, INCLUDING ANY MANUFACTURER, SUPPLIER, WHOLESALER, DISTRIB-
 UTOR OR RETAIL SELLER OF FOOD AND FOOD PRODUCTS  OR  BOTH  SOLD  BY  ONE
 PARTY TO ANOTHER WHEN THE PRODUCT SOLD WAS LOCATED IN THE STATE PRIOR TO
 THE SALE.
   2.  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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05478-01-5
 A. 2737                             2
              

 
   (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 FOOD AND FOOD PRODUCTS WHICH WERE THE
 SUBJECT  OF  THE  TRANSACTION  AND  THEIR VALUE MEASURED BY THE PRICE AT
 WHICH SUCH FOOD AND FOOD PRODUCTS WERE SOLD OR OFFERED FOR SALE  BY  THE
 DEFENDANT  IN  THE  USUAL COURSE OF BUSINESS; OR (II) THE AMOUNT CHARGED
 GROSSLY EXCEEDED THE PRICE AT WHICH THE SAME OR SIMILAR  FOOD  AND  FOOD
 PRODUCTS WERE READILY OBTAINABLE IN THE TRADE AREA.
   (C)  A  DEFENDANT MAY REBUT A PRIMA FACIE CASE WITH EVIDENCE THAT: (I)
 THE INCREASE IN THE AMOUNT CHARGED PRESERVES THE MARGIN OF  PROFIT  THAT
 THE  DEFENDANT  RECEIVED  FOR  THE  SAME FOOD AND FOOD PRODUCTS; OR (II)
 ADDITIONAL COSTS NOT WITHIN THE CONTROL OF THE DEFENDANT WERE IMPOSED ON
 THE DEFENDANT FOR THE FOOD AND FOOD PRODUCTS.
   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  TWENTY-
 FIVE  THOUSAND  DOLLARS  PER VIOLATION OR THREE TIMES THE GROSS RECEIPTS
 FOR THE RELEVANT FOOD AND FOOD PRODUCTS, WHICHEVER IS GREATER AND, WHERE
 APPROPRIATE, ORDER RESTITUTION TO AGGRIEVED PARTIES.
   4. 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.