Assembly Bill A94

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    94
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. DINOWITZ, COOK, SIMON, SEAWRIGHT -- Multi-Spon-
   sored by -- M. of A. BRAUNSTEIN, GLICK -- 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

   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  90 of the laws of 2020, subdivision 2 as amended by chapter 725
 of the laws of 2023, 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 goods have taken  unfair  advantage  of  the  public  by
 charging grossly excessive prices for essential goods and services.
   In  order to prevent any party within the chain of distribution of any
 goods from  taking  unfair  advantage  of  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 AND CRIMINAL penalties.
   2.  (a)  During  any  abnormal  disruption of the market for 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 goods or services or both shall sell or offer to sell  any
 such  goods or services or both for an amount which represents an uncon-
 scionably excessive price.
   (b) For purposes of this section, the phrase "abnormal  disruption  of
 the market" shall mean any change in the market, whether actual or immi-
 nently  threatened,  resulting  from  stress  of  weather, convulsion of
 nature, failure or shortage of electric power or other source of energy,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00886-01-5
 A. 94                               2
 
 strike, civil disorder, war, military action, national or local emergen-
 cy, drug shortage, or other cause  of  an  abnormal  disruption  of  the
 market  [which results in the declaration of a state of emergency by the
 governor].
   (c) For purposes of this section, the term "drug shortage" shall mean,
 with respect to any drug or medical product intended for human use, that
 such  drug or medical product is publicly reported as being subject to a
 shortage by the U.S. Food and Drug Administration.
   (d) For the purposes of this section, the term  "goods  and  services"
 shall  include  (i) consumer goods and services used, bought or rendered
 primarily for personal, family or  household  purposes,  (ii)  essential
 medical  supplies  and  services  used  for  the care, cure, mitigation,
 treatment or prevention of any illness or disease, and (iii)  any  other
 essential  goods  and  services used to promote the health or welfare of
 the public.
   (e) This prohibition shall apply to all parties within  the  chain  of
 distribution, including any manufacturer, supplier, wholesaler, distrib-
 utor  or retail seller of goods or services or both sold by one party to
 another when the product sold was located in  the  state  prior  to  the
 sale.  For  the  purposes  of  this  subdivision,  the  term  "goods and
 services" shall also include any repairs made by any  party  within  the
 chain of distribution of goods on an emergency 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 goods or  services  were
 sold  or  offered for sale by the defendant in the usual course of busi-
 ness 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 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. ANY PERSON WHO VIOLATES THE PROVISIONS OF  THIS  SECTION  SHALL  BE
 GUILTY OF A VIOLATION.
   5.  Where  a  violation of this section is alleged to have occurred, A
 DISTRICT ATTORNEY MAY FILE AN  ACCUSATORY  INSTRUMENT  WITH  A  CRIMINAL
 COURT  WITHIN THE JUDICIAL DISTRICT IN WHICH SUCH VIOLATIONS ARE ALLEGED
 TO HAVE OCCURRED, AND 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
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 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 parties.
   [5.] 6. 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.