HF 4454

as introduced - 91st Legislature (2019 - 2020) Posted on 04/28/2020 01:08pm

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.

[325E.80] ABNORMAL MARKET DISRUPTIONS; UNCONSCIONABLY
EXCESSIVE PRICES.

Subdivision 1.

Definitions.

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

(b) "Abnormal market disruption" means any change in the market resulting from a
natural or man-made disaster, a national or local emergency, a public health 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 a seven-day period.

(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.

(d) "Unconscionably excessive" means:

(1) the amount charged represents a gross disparity between the price of the good or
service and (i) the price the same good or service is 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 the same or similar good or service is readily obtainable by other purchasers in
the trade area; and

(2) the disparity (i) is not substantially attributable to significant additional costs outside
the control of the seller, and (ii) does not increase the seller's profit.

Subd. 2.

Prohibition.

During any abnormal market disruption a person is prohibited
from selling or offering to sell any essential consumer goods or services for an amount that
represents an unconscionably excessive price.

Subd. 3.

Civil penalty.

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.

Subd. 4.

Enforcement authority.

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 under section 8.31.

EFFECTIVE DATE.

This section is effective the day following final enactment.