1.1 A bill for an act
1.2 relating to consumer
protection; prohibiting price gouging during an abnormal
1.3 market disruption;
prescribing penalties;proposing coding for new law in Minnesota
1.4 Statutes, chapter 325E.
1.5 BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF MINNESOTA:
1.6 Section 1. [325E.80]
ABNORMAL MARKET DISRUPTIONS; UNCONSCIONABLY
1.7 EXCESSIVE
PRICES.
1.8 Subdivision
1.Definitions. (a) For purposes of this section, the terms in
this subdivision
1.9 have the meanings
given.
1.10 (b) "Essential
consumer good or service" means a good or service that is vital and
1.11 necessary for the
health, safety, and welfare of the public, including without limitation:
1.12 food; water; fuel;
gasoline; shelter; transportation; health care services; pharmaceuticals;
1.13 and medical, personal
hygiene, sanitation, and cleaning supplies.
1.14 (c) "Seller"
means a manufacturer, supplier, wholesaler, distributor, or retail seller of
1.15 goods and services.
1.16 (d) "Unconscionably
excessive price" means a price that represents a gross disparity
1.17 compared to the seller's
average price of an essential good or service, offered for sale or
1.18 sold in the usual course
of business, in the 60-day period before an abnormal market
1.19 disruption is declared
under subdivision 2. None of the following is an unconscionably
1.20 excessive price:
1.21 (1) a price that is
substantially related to an increase in the cost of manufacturing,
1.22 obtaining, replacing,
providing, or selling a good or service;
2.1 (2) a price that is no
more than 25 percent above the seller's average price during the
2.2 60-day period before
an abnormal market disruption is declared under subdivision 2;
2.3 (3) a price that is
consistent with the fluctuations in applicable commodity markets or
2.4 seasonal fluctuations;
or
2.5 (4) a contract price,
or the results of a price formula, that was established before an
2.6 abnormal market
disruption is declared under subdivision 2.
2.7 Subd.
2.Abnormal market disruption. (a) The governor may by executive
order declare
2.8 an abnormal market
disruption if, in the governor's sole determination, there has been or is
2.9 likely to be a
substantial and atypical change in the market for an essential consumer good
2.10 or service caused by an
event or circumstances that result in a declaration of a state of
2.11 emergency by the
governor. The governor may specify an effective period for a declaration
2.12 under this section that
is shorter than the effective period for the state of emergency
2.13 declaration.
2.14 (b) The governor's
abnormal market disruption declaration must state that the declaration
2.15 is activating this
section and must specify the geographic area of Minnesota to which the
2.16 declaration applies.
2.17 (c) Unless an earlier
date is specified by the governor, an abnormal market disruption
2.18 declaration under this
subdivision terminates 30 days after the date that the state of emergency
2.19 for which it was
activated ends.
2.20 Subd. 3.Notice.
Upon the implementation, renewal, limitation, or termination of an
2.21 abnormal market
disruption declaration made under subdivision 2: (1) the governor must
2.22 immediately post notice
on applicable government websites and provide notice to the media;
2.23 and (2) the commissioner
of commerce must provide notice directly to sellers by any practical
2.24 means.
2.25 Subd. 4.Prohibition.
If the governor declares an abnormal market disruption, a person
2.26 is prohibited from
selling or offering to sell an essential consumer good or service for an
2.27 amount that represents
an unconscionably excessive price during the period in which the
2.28 abnormal market
disruption declaration is effective.
2.29 Subd. 5.Civil
penalty. A person who is found to have violated this section is
subject
2.30 to a civil penalty of
not more than $1,000 per sale or transaction, with a maximum penalty
2.31 of $25,000 per day. No
other penalties may be imposed for the same conduct regulated
2.32 under this section.
3.1 Subd.
6.Enforcement authority. (a) The attorney general may investigate
and bring
3.2 an action against a
seller for an alleged violation of this section.
3.3 (b) Nothing in this
section creates a private cause of action in favor of a person injured
3.4 by a violation of this
section.
3.5 EFFECTIVE DATE.
This section is effective the day following final enactment.
