Prohibiting Price Gouging in Sales of Necessities

Under current law, a person engages in an unfair and unconscionable act or practice in violation of consumer protection laws if the person engages in price gouging during a declared disaster emergency. The act provides that a person engages in price gouging in the sale or offer for sale of certain goods or services if, after the governor declares a disaster emergency, which declaration may be based on a market disruption, the price of the good or service is increased by 10% or more above the price at which a similar good or service was sold or offered for sale before the disaster began. The act also establishes that seasonal pricing is not considered unreasonably excessive pricing and therefore is not price gouging.

(Note: This summary applies to this bill as enacted.)