2012 -- S 2606

=======

LC01889

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

UNFAIR SALES PRACTICES

     Introduced By: Senators Algiere, Bates, and Tassoni

     Date Introduced: March 01, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

1-1

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

1-2

hereby amended by adding thereto the following section:

1-3

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

1-4

emergency by the governor, or federal disaster declaration by the president, or during an actual or

1-5

anticipated market emergency or economic emergency, it shall be an unfair sales practice for

1-6

individuals or retailers to participate in price gouging by making sales of, or offering to sell,

1-7

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

1-8

     (b) As used in this section;

1-9

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

1-10

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

1-11

available and sold or offered for sale within the local trade area immediately prior to a declaration

1-12

of a state of emergency by the governor or other market emergency, and that the additional

1-13

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

1-14

or abnormal market disruption.

1-15

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

1-16

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

1-17

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

1-18

within the area for which the state of emergency is declared, any essential commodity, including,

1-19

but not limited to, home heating fuels, motor fuels, supplies, services, provisions, or equipment

2-1

that is necessary for consumption or use as a direct result of the emergency.

2-2

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

2-3

essential commodities during a declared or anticipated state of emergency;

2-4

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

2-5

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

2-6

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

2-7

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

2-8

     (4) “Market emergency” means any abnormal disruption of the market for essential

2-9

commodities, including, but not limited to, any actual or threatened shortage in the supply or any

2-10

actual or threatened increase in the price of the essential commodities, resulting from severe

2-11

weather, convulsion of nature, failure or shortage of electric power or other source of energy,

2-12

strike, civil disorder, act of war, national or local emergency or other extraordinary adverse

2-13

circumstances.

2-14

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

2-15

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

2-16

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

2-17

family, or household purposes.

2-18

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

2-19

making sales at retail within this state.

2-20

     (8) “Economic emergency” means a state of the economy wherein a substantial number

2-21

of persons, either because of increased prices or a reduction in income, or a combination of those

2-22

factors, are experiencing difficulty in affording essential commodities.

2-23

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

2-24

occur during the normal course of business.

2-25

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

2-26

of chapter 13.1 of title 6.

2-27

     (e) In addition to the penalties provided in chapter 13.1 of title 6, and subdivision 30-15-

2-28

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

2-29

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

2-30

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

2-31

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

2-32

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

2-33

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

3-34

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

3-35

consumer enforcement efforts.

3-36

     SECTION 2. This act shall take effect upon passage.

=======

LC01889

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

UNFAIR SALES PRACTICES

***

4-1

     This act would prohibit individuals and retailers of essential commodities from engaging

4-2

in price gouging during a market emergency, an economic emergency, or upon a declaration of a

4-3

state of emergency by the governor or federal disaster declaration.

4-4

     This act would take effect upon passage.

=======

LC01889

=======