Prohibiting Price Gouging in Sales of Necessities

Under current law, a person engages in an unfair and unconscionable act or practice in violation of consumer protection laws (unfair act) if the person engages in price gouging during a declared disaster. The bill adds engaging in price gouging in the sale of necessities as an unfair act and creates a presumption that, if the price of a necessity is increased by 10% or more above the average price that the necessity cost during the 90 days preceding the price increase, the price increase amounts to price gouging.

The bill also defines "necessities" as goods or services that are necessary for the health, safety, and welfare of consumers or of the general public.

(Note: This summary applies to this bill as introduced.)