HF 4190

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to consumer protection; prohibiting price gouging; prescribing penalties;
proposing coding for new law in Minnesota Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.60] ABNORMAL MARKET DISRUPTIONS;
UNCONSCIONABLY EXCESSIVE PRICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this
subdivision have the meanings given.
new text end

new text begin (b) "Abnormal market disruption" means any change in the market resulting from
a natural or man-made disaster, a national or local emergency, or an event resulting in a
declaration of a state of emergency by the governor or president. "Abnormal market
disruption" also means an increase in the price for any essential consumer goods or
services that exceeds 30 percent within any seven-day period.
new text end

new text begin (c) "Essential consumer goods or services" means goods or services vital and
necessary for the health, safety, and welfare of the public, including, without limitation,
food, water, fuel, gasoline, shelter, transportation, health care services, pharmaceuticals,
and medical supplies.
new text end

new text begin (d) A price is "unconscionably excessive" if:
new text end

new text begin (1) the amount charged represents a gross disparity between the price of the good
or service and (i) the price at which the same good or service was sold or offered for
sale in the usual course of business immediately prior to the onset of the abnormal
market disruption, or (ii) the price at which the same or similar good or service is readily
obtainable by other purchasers in the trade area; and
new text end

new text begin (2) the disparity is not substantially attributable to significant additional costs not
within the control of the seller and does not increase the seller's profit.
new text end

new text begin Subd. 2. new text end

new text begin Prohibition. new text end

new text begin During any abnormal market disruption no person shall sell
or offer to sell any essential consumer goods or services for an amount that represents an
unconscionably excessive price.
new text end

new text begin Subd. 3. new text end

new text begin Civil penalty. new text end

new text begin Any person who is found to have violated this section is
subject to a civil penalty of not more than $10,000 per sale or transaction.
new text end

new text begin Subd. 4. new text end

new text begin Enforcement authority. new text end

new text begin The attorney general may investigate any
alleged violation of this section. The authority of the attorney general under this section
includes, but is not limited to, the authority provided for in section 8.31. In addition, the
commissioner of commerce may use the authority under section 45.027 for the purpose of
preventing violations of this section.
new text end