ASSEMBLY, No. 1617
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 29, 1996
By Assemblyman ZISA
An Act prohibiting excessive price increases at certain times and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that during emergencies and major disasters, including, but not lmited to, earthquakes, fires, floods or civil disturbances, some merchants have taken unfair advantage of consumers by greatly increasing prices for essential consumer goods and services. While the pricing of consumer goods and services is generally best left to the marketplace under ordinary conditions, when a declared state of emergency results in abnormal disruptions of the market, the public interest requires that excessive and unjustified price increases in the sale of essential consumer goods or services be prohibited. It is the intention of the Legislature to prohibit excessive and unjustified price increases in the sale of essential consumer goods or services during declared states of emergency in New Jersey.
2. As used in this act:
"Essential consumer good or service" means water and all beverages intended for human consumption, food, medicines and medical supplies, sanitation and personal hygiene supplies, gasoline and other motor fuels, home heating oil, building materials and other materials, any goods or services used for emergency cleanup or emergency repair, any repair or reconstruction services offered or provided to repair residential and commercial property of any type damaged as a result of a disaster, and emergency supplies including flashlights, radios, batteries, candles, blankets, and temporary shelters.
"Excessive price increase" means a price that is excessive as compared to the price at which the consumer good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency. A price shall be deemed excessive if:
(1) The price exceeds by more than 10 percent the price at which the good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency, unless the price charged by the seller is attributable to additional costs imposed by the seller's supplier or other costs of providing the good or service during the state of emergency;
(2) In those situations where the increase in price is attributable to additional costs imposed by the seller's supplier or additional costs of providing the good or service during the state of emergency, the price represents an increase of more than 10 percent in the amount of markup from cost, compared to the markup customarily applied by the seller in the usual course of business immediately prior to the state of emergency.
"State of emergency" means a natural or man-made disaster or emergency for which a state of emergency has been declared by the President of the United States or the Governor, or for which a state of emergency has deen declared by a municipal emergency management coordinator.
3. It shall be an unlawful practice for any person to sell or offer to sell any essential consumer good or service during a state of emergency or within 30 days of the termination of a state of emergency, in the area for which the state of emergency has been declared, for a price that constitutes an excessive price increase.
4. This act shall take effect immediately.
STATEMENT
This bill prohibits the charging of an excessive price for an essential consumer good or service during a state of emergency or within 30 days of the termination of a state of emergency. The bill defines a state of emergency as a natural or man-made disaster or emergency for which a state of emergency has been declared by the President of the United States or the Governor, or for which a state of local disaster emergency has been proclaimed by a municipal emergency management coordinator.
The bill defines excessive price as a price that is excessive as compared to the price at which the consumer good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency. A price shall be deemed excessive if the price exceeds by more than 10 percent the price at which the good or service was sold or offered for sale by the seller in the usual course of business immediately prior to the state of emergency, unless the price charged by the seller is attributable to additional costs imposed by the seller's supplier or other costs of providing the good or service during the state of emergency. In those situations where the increase in price is attributable to additional costs imposed by the seller's supplier or additional costs of providing the good or service during the state of emergency, the price shall be deemed excessive if it represents an increase of more than 10 percent in the amount of markup from cost, compared to the markup customarily applied by the seller in the usual course of business immediately prior to the state of emergency.
The bill provides that it is an unlawful practice under the consumer fraud law to charge an excessive price during a state of emergency, thereby subjecting violators to a penalty of not more than $7,500 for a first offense and not more than $15,000 for the second and each subsequent offense.
Prohibits sale of essential consumer goods or services at excessive prices during certain emergencies.