Colorado approves fuel price-gouging protections
State lawmakers around the country took up pursuit this year of rule revisions to address merchants who take advantage of special circumstances, such as a man-made or weather event, to increase the price of goods, including fuel.
The National Conference of State Legislatures reports that 39 states have some type of price-gouging ban. Statutes or regulations in most states are triggered by disaster or emergency declarations.
Price gouging typically constitutes a violation of unfair or deceptive trade practices law.
Most laws provide for civil penalties enforced by the state attorney general. Some state laws also permit criminal penalties for price gouging.
Colorado
A new Colorado law is touted to help crack down on price gouging for everyday necessities, including fuel.
Previously HB1010, the new law adds a provision to existing statute to more clearly define what is covered.
The law prohibits price gouging of goods or services necessary for the health, safety and welfare of Coloradans during a declared emergency.
Price gouging is defined as a price increase of at least 10% above the average cost of the product or good that is not due to seasonal pricing.
“Time and again, we have seen bad actors use disasters as an excuse to raise prices on necessities and line their own pocket,” Sen. Mike Weissman, D-Aurora, said in prepared remarks. “It’s time for us to step in and ensure that Colorado families can purchase the things they need at prices they can afford during times of crisis.”
The new law takes effect Aug. 6.
New York
Concern about price gouging is also addressed in a New York Assembly bill.
State law prohibits price gouging of goods and services.
Assemblywoman Nily Rozic, D-Fresh Meadows, is behind a bill intended to clarify that “vital and necessary goods” include fuel, energy and transportation goods and services.
The bill, A255, would add to statute a requirement that the state’s attorney general publicize regulations to obligate “periodic price disclosure by all actors in the supply chain.” The rules would apply for gas, diesel, crude oil or otherwise that are sold in or into the state.
“Requiring periodic disclosure of the prices charged at each stage of the supply chain for oil and gas in New York by every actor in that chain, rather than simply the spot prices charged at the pump or at the terminal, permits rapid detection of both unconscionably excessive prices and the actors behind those unconscionably excessive prices after abnormal disruptions of the market,” a bill memo reads.
The bill is in the Assembly Consumer Affairs and Protection Committee. LL