Chapter 311

2012 -- H 7409 SUBSTITUTE A

Enacted 06/20/12

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

UNFAIR SALES PRACTICES

Introduced By: Representatives Azzinaro, Guthrie, DaSilva, Edwards, and Phillips

Date Introduced: February 08, 2012

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is

hereby amended by adding thereto the following section:

6-13-21. Price gouging - essential commodities. -- (a) Upon a declaration of a state

of emergency by the governor, or federal disaster declaration by the president, it shall be

an unfair sales practice for individuals or retailers, to participate in price gouging, by making

sales, or offering to sell, within the area for which the market emergency is declared, essential

commodities to consumers for an amount that represents an unconscionably high price.

(b) As used in this section;

(1) “Unconscionably high price” means the amount charged represents a gross disparity

between the average prices at which the same or similar commodity was readily available and

sold or offered for sale within the local trade area in the usual course of business during the thirty

(30) days immediately before the declaration of the market emergency, and the additional charges

are not substantially attributable to increased cost to retailers, imposed by their suppliers,

including replacement costs imposed by the vendors’ source. Additionally, the average price

calculation during said thirty (30) day period shall not include discounted prices set and offered

as a result of bona fide manufacturer’s or supplier’s limited discounts or rebates.

(i) Under a federal disaster declaration by the president or upon a declaration of a state of

emergency by the governor, it is unlawful and a violation of chapter 6-13 of title 6, and

subdivision 30-15-9(e)(12) of title 30, to sell, or offer to sell, at an unconscionably high price,

any essential commodity.

(2) "Price gouging" means charging a consumer an unconscionably high price for

essential commodities during a declared market emergency;

(3) “Essential commodities” means any goods, services, materials, merchandise, supplies,

equipment, resources, or other article of commerce, and includes, without limitation, home

heating fuels, motor fuels, food, water, ice, chemicals, petroleum products and lumber necessary

for consumption or use as a direct result of the market emergency.

(4) “Market emergency” means any declaration of a state of emergency by the

governor or federal disaster declaration by the president. The market emergency shall exist until

the declaration expires or is terminated.

(5) "Individual" means a person, corporation, partnership, limited liability company,

association, joint venture, agency, or any other legal or commercial entity.

(6) "Consumer" means an individual who enters into a transaction primarily for personal,

family, or household purposes.

(7) "Retailer" means and includes every individual licensed to engage in the business of

making sales at retail within this state.

(c) This section shall not prohibit the fluctuation in price of essential commodities which

occur during the normal course of business.

(d) Any violation of this section shall constitute an unfair sales practice under the terms

of chapter 13.1 of title 6.

(e) In addition to the penalties provided in chapter 13.1 of title 6, and subdivision 30-

15-9(e)(12), the court may impose orders and civil penalties, including, but not limited to;

(1) A fine of not more than one thousand dollars ($1,000) per violation with an aggregate

total not to exceed twenty-five thousand dollars ($25,000) for any twenty-four (24) hour period;

(2) An order to pay costs of litigation relating to the offense;

(3) An order for disgorgement of profits earned; and

(4) Any other relief determined by the court to be appropriate.

(f) All monetary penalties so collected shall accrue to the enforcing authority to further

consumer enforcement efforts.

SECTION 2. This act shall take effect upon passage.

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LC00735/SUB A

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