SF 6

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/03/2023 03:47pm

A bill for an act
relating to consumer protection; prohibiting price gouging; establishing notice
requirements; prescribing penalties; providing the attorney general with
investigation and enforcement authority; creating a private civil right of action;
amending Minnesota Statutes 2022, section 8.31, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapter 325E.

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

Section 1.

Minnesota Statutes 2022, section 8.31, subdivision 1, is amended to read:

Subdivision 1.

Investigate offenses against provisions of certain designated sections;
assist in enforcement.

The attorney general shall investigate violations of the law of this
state respecting unfair, discriminatory, and other unlawful practices in business, commerce,
or trade, and specifically, but not exclusively, the Nonprofit Corporation Act (sections
317A.001 to 317A.909), the Act Against Unfair Discrimination and Competition (sections
325D.01 to 325D.07), the Unlawful Trade Practices Act (sections 325D.09 to 325D.16),
the Antitrust Act (sections 325D.49 to 325D.66), section 325F.67 and other laws against
false or fraudulent advertising, the antidiscrimination acts contained in section 325D.67,
the act against monopolization of food products (section 325D.68), the act regulating
telephone advertising services (section 325E.39), the Prevention of Consumer Fraud Act
(sections 325F.68 to 325F.70), new text begin the act regulating price gouging (section 325E.80), new text end and
chapter 53A regulating currency exchanges and assist in the enforcement of those laws as
in this section provided.

Sec. 2.

new text begin [325E.80] 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) "Essential consumer good or service" means a good or service that is vital for the
health, safety, or welfare of the public, including without limitation: food; water; fuel;
gasoline; shelter; transportation; health care services; pharmaceuticals; and medical, personal
hygiene, sanitation, and cleaning supplies.
new text end

new text begin (c) "Seller" means a manufacturer, supplier, wholesaler, distributor, or retail seller of
goods and services.
new text end

new text begin (d) "Unconscionably excessive price" means a price that represents a gross disparity
compared to the seller's average price of an essential good or service, offered for sale or
sold in the usual course of business, in the 60-day period before an abnormal market
disruption is declared under subdivision 2. None of the following is an unconscionably
excessive price:
new text end

new text begin (1) a price that is substantially related to an increase in the cost of manufacturing,
obtaining, replacing, providing, or selling a good or service;
new text end

new text begin (2) a price that is no more than 25 percent above the seller's average price during the
60-day period before an abnormal market disruption is declared under subdivision 2;
new text end

new text begin (3) a price that is consistent with the fluctuations in applicable commodity markets or
seasonal fluctuations; or
new text end

new text begin (4) a contract price, or the results of a price formula, that was established before an
abnormal market disruption is declared under subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Abnormal market disruption. new text end

new text begin (a) The governor may by executive order declare
an abnormal market disruption if there is a substantial and atypical change in the market
for an essential consumer good or service caused by an event that results in a declaration
of a state of emergency by the governor.
new text end

new text begin (b) The governor's abnormal market disruption declaration must state that the declaration
is activating this section and must specify the geographic area of Minnesota to which the
declaration applies.
new text end

new text begin (c) A declaration under this subdivision terminates 30 days after the date that the state
of emergency for which it was activated ends.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin Upon the implementation, renewal, limitation, or termination of an
abnormal market disruption declaration made under subdivision 2: (1) the governor must
immediately post notice on applicable government websites and provide notice to the media;
and (2) the commissioner of commerce must provide notice directly to sellers by any practical
means.
new text end

new text begin Subd. 4. new text end

new text begin Prohibition. new text end

new text begin If the governor declares an abnormal market disruption, a person
is prohibited from selling or offering to sell an essential consumer good or service for an
amount that represents an unconscionably excessive price during the period in which the
abnormal market disruption declaration is effective.
new text end

new text begin Subd. 5. new text end

new text begin Civil penalty. new text end

new text begin A person who is found to have violated this section is subject
to a civil penalty of not more than $1,000 per sale or transaction, with a maximum penalty
of $25,000 per day, in addition to any damages that may be owed under subdivision 7.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement authority. new text end

new text begin The attorney general may investigate and bring an
action against a seller for an alleged violation of this section.
new text end

new text begin Subd. 7. new text end

new text begin Damages. new text end

new text begin Any person, any governmental body, or the state of Minnesota or
any of its subdivisions or agencies, injured directly or indirectly by a violation of this section
may bring a civil action and shall recover three times the actual damages sustained, together
with costs and disbursements, including reasonable attorney fees. In any subsequent action
arising from the same conduct, the court may take any steps necessary to avoid duplicative
recovery against a defendant. In any action brought by the attorney general pursuant to this
section, the court may award any of the remedies allowable under this subdivision or
otherwise permitted by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end