Budget Amendment ID: FY2024-S3-150

ECO 150

Preventing Price Gouging during an Emergency

Messrs. Tarr and Montigny moved that the proposed new text be amended by inserting after section ___ the following section:-

"SECTION_. Chapter 93A as appearing in the 2018 official edition is hereby amended by inserting after SECTION 11 at the end thereof the following new section 12:-

SECTION 12. For the purposes of paragraphs (1) and (2) and (3), the following words shall, unless the context otherwise requires, have the following meaning:

“Market emergency”, any abnormal disruption of any market for petroleum products, including but not limited to any actual or threatened shortage in the supply of petroleum products or any actual or threatened increase in the price of petroleum products, resulting from severe weather, convulsion of nature, failure or shortage of electric power or other source of energy, strike, civil disorder, act of war, national or local emergency or other extraordinary adverse circumstances.

“Petroleum product”, includes, but is not limited to, motor fuels as defined in section 295A and fuel oil used for heating or cooking purposes as described in section 303F of chapter 94.

“Petroleum-related business”, any producer, supplier, wholesaler, distributor, or retail seller of any petroleum product.

(1) It shall be an unfair or deceptive act or practice, during any market emergency, or any declared statewide emergency, for any petroleum-related business to sell or offer to sell any petroleum product for an amount that represents an unconscionably high price.

(2) A price is unconscionably high for the purposes of paragraph (1) of this section if:

(a) the amount charged represents a gross disparity between the price of the petroleum product and

1. the price at which the same product was sold or offered for sale by the petroleum-related business in the usual course of business immediately prior to the onset of the market or statewide emergency, or

2. the price at which the same or similar petroleum product is readily obtainable by other buyers in the trade area; and

(b) the disparity is not substantially attributable to increased prices charged by the petroleum-related business suppliers or increased costs, including actual or anticipated replacement costs, due to an abnormal market disruption.

(3).  A price is not unconscionably high for the purposes of paragraph (1) of this section if:

(a) the disparity in price as set forth in paragraph (2) of this section is substantially attributable to increased prices charged by the petroleum-related business’s suppliers or increased costs, including actual or anticipated replacement costs, due to an abnormal market disruption; or

(b) it is generally consistent with price fluctuations in applicable commodity, regional, national, or international markets, or typical seasonal price fluctuations; or

(c) it is a contract price, or the result of a price formula, established prior to the onset of the market or statewide emergency, or

(d) it is a price, or the result of a price formula, approved by a state or federal governmental entity prior to the onset of or after the market or statewide emergency.

(4). It shall be an unfair or deceptive act or practice, during any declared statewide or national emergency, for any business at any point in the chain of distribution or manufacture to sell or offer to sell to any consumer or to any other business any goods or services necessary for the health, safety, or welfare of the public for an amount that represents an unconscionably high price.

(5). A price is unconscionably high for the purposes of paragraph 4 of this section provided the following:

(a) there is gross disparity between the price charged or offered; and

1. the price at which the same good or service was sold or offered for sale by the business in the usual course of business immediately prior to the onset of the declared statewide or national emergency; or

2. the price at which the same or similar product is readily obtainable from other businesses; and

(b) the disparity is not substantially attributable to increased prices charged by the business’s suppliers or increased costs due to an abnormal market disruption

(6). Paragraphs (4) and (5) above shall not apply to any petroleum-related business subject to paragraph (1), (2), and (3) of this section."