Minnesota Legislature
HF 740
1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:37pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to consumer protection; prohibiting price gouging on essential consumer
1.3goods and services under certain conditions; providing enforcement authority;
1.4proposing coding for new law in Minnesota Statutes, chapter 325E.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [325E.425] SALES OF ESSENTIAL CONSUMER GOODS AND
1.7SERVICES; EXCESSIVE PRICES PROHIBITED.
1.8 Subdivision 1. Definitions. For purposes of this section, the terms in this subdivision
1.9have the meanings given them.
1.10(a) "Abnormal market disruption" means any change in the market resulting from
1.11a natural or man-made disaster, a national or local emergency, or an event resulting in a
1.12declaration of a state of emergency by the governor or president.
1.13 (b) "Disaster" has the meaning given in section 12.03, subdivision 2.
1.14 (c) "Emergency" has the meaning given in section 12.03, subdivision 3.
1.15(d) "Essential consumer goods or services" means goods or services vital and
1.16necessary for the health, safety, and welfare of the public, including, without limitation,
1.17food, water, fuel, gasoline, shelter, transportation, health care services, pharmaceuticals,
1.18and medical supplies.
1.19(e) A price is "excessive" if:
1.20(1) the amount charged represents a gross disparity between the price of the good
1.21or service and the price at which the same good or service was sold or offered for sale
1.22in the usual course of business immediately prior to the onset of the abnormal market
1.23disruption; and
2.1(2) the disparity is not attributable to significant additional costs not within the
2.2control of the seller and does not increase the seller's usual and customary profit margin.
2.3 Subd. 2. Prohibition. During any abnormal market disruption, no person shall sell
2.4or offer to sell any essential consumer goods or services for an amount that represents
2.5an excessive price.
2.6 Subd. 3. Civil penalty. Any person who violates this section is subject to a civil
2.7penalty of not more than $10,000 per sale or transaction.
2.8 Subd. 4. Enforcement authority. The attorney general may investigate an
2.9alleged violation of this section. The authority of the attorney general under this section
2.10includes, but is not limited to, the authority provided for in section 8.31. In addition, the
2.11commissioner of commerce may use the authority under section 45.027 for the purpose of
2.12preventing violations of this section.
2.13 Subd. 5. Relation to other law. This section does not supersede section 325D.71.
1.3goods and services under certain conditions; providing enforcement authority;
1.4proposing coding for new law in Minnesota Statutes, chapter 325E.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [325E.425] SALES OF ESSENTIAL CONSUMER GOODS AND
1.7SERVICES; EXCESSIVE PRICES PROHIBITED.
1.8 Subdivision 1. Definitions. For purposes of this section, the terms in this subdivision
1.9have the meanings given them.
1.10(a) "Abnormal market disruption" means any change in the market resulting from
1.11a natural or man-made disaster, a national or local emergency, or an event resulting in a
1.12declaration of a state of emergency by the governor or president.
1.13 (b) "Disaster" has the meaning given in section 12.03, subdivision 2.
1.14 (c) "Emergency" has the meaning given in section 12.03, subdivision 3.
1.15(d) "Essential consumer goods or services" means goods or services vital and
1.16necessary for the health, safety, and welfare of the public, including, without limitation,
1.17food, water, fuel, gasoline, shelter, transportation, health care services, pharmaceuticals,
1.18and medical supplies.
1.19(e) A price is "excessive" if:
1.20(1) the amount charged represents a gross disparity between the price of the good
1.21or service and the price at which the same good or service was sold or offered for sale
1.22in the usual course of business immediately prior to the onset of the abnormal market
1.23disruption; and
2.1(2) the disparity is not attributable to significant additional costs not within the
2.2control of the seller and does not increase the seller's usual and customary profit margin.
2.3 Subd. 2. Prohibition. During any abnormal market disruption, no person shall sell
2.4or offer to sell any essential consumer goods or services for an amount that represents
2.5an excessive price.
2.6 Subd. 3. Civil penalty. Any person who violates this section is subject to a civil
2.7penalty of not more than $10,000 per sale or transaction.
2.8 Subd. 4. Enforcement authority. The attorney general may investigate an
2.9alleged violation of this section. The authority of the attorney general under this section
2.10includes, but is not limited to, the authority provided for in section 8.31. In addition, the
2.11commissioner of commerce may use the authority under section 45.027 for the purpose of
2.12preventing violations of this section.
2.13 Subd. 5. Relation to other law. This section does not supersede section 325D.71.