HF 740

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:37 p.m.

1.1A bill for an act 1.2relating to consumer protection; prohibiting price gouging on essential consumer 1.3goods and services under certain conditions; providing enforcement authority; 1.4proposing coding for new law in Minnesota Statutes, chapter 325E. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6    Section 1. new text begin [325E.425] SALES OF ESSENTIAL CONSUMER GOODS AND new text end 1.7 new text begin SERVICES; EXCESSIVE PRICES PROHIBITED. new text end 1.8     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this section, the terms in this subdivision new text end 1.9 new text begin have the meanings given them. new text end 1.10 new text begin (a) "Abnormal market disruption" means any change in the market resulting from new text end 1.11 new text begin a natural or man-made disaster, a national or local emergency, or an event resulting in a new text end 1.12 new text begin declaration of a state of emergency by the governor or president. new text end 1.13     new text begin (b) "Disaster" has the meaning given in section 12.03, subdivision 2. new text end 1.14     new text begin (c) "Emergency" has the meaning given in section 12.03, subdivision 3. new text end 1.15 new text begin (d) "Essential consumer goods or services" means goods or services vital and new text end 1.16 new text begin necessary for the health, safety, and welfare of the public, including, without limitation, new text end 1.17 new text begin food, water, fuel, gasoline, shelter, transportation, health care services, pharmaceuticals, new text end 1.18 new text begin and medical supplies. new text end 1.19 new text begin (e) A price is "excessive" if: new text end 1.20 new text begin (1) the amount charged represents a gross disparity between the price of the good new text end 1.21 new text begin or service and the price at which the same good or service was sold or offered for sale new text end 1.22 new text begin in the usual course of business immediately prior to the onset of the abnormal market new text end 1.23 new text begin disruption; and new text end 2.1 new text begin (2) the disparity is not attributable to significant additional costs not within the new text end 2.2 new text begin control of the seller and does not increase the seller's usual and customary profit margin. new text end 2.3     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 new text end 2.4 new text begin or offer to sell any essential consumer goods or services for an amount that represents new text end 2.5 new text begin an excessive price. new text end 2.6     new text begin Subd. 3. new text end new text begin Civil penalty. new text end new text begin Any person who violates this section is subject to a civil new text end 2.7 new text begin penalty of not more than $10,000 per sale or transaction. new text end 2.8     new text begin Subd. 4. new text end new text begin Enforcement authority. new text end new text begin The attorney general may investigate an new text end 2.9 new text begin alleged violation of this section. The authority of the attorney general under this section new text end 2.10 new text begin includes, but is not limited to, the authority provided for in section 8.31. In addition, the new text end 2.11 new text begin commissioner of commerce may use the authority under section 45.027 for the purpose of new text end 2.12 new text begin preventing violations of this section. new text end 2.13     new text begin Subd. 5. new text end new text begin Relation to other law. new text end new text begin This section does not supersede section 325D.71. new text end