2019 New York Laws
GBS - General Business
Article 26 - Miscellaneous
396-R - Price Gouging.

§  396-r.  Price gouging. 1. Legislative findings and declaration. The
legislature hereby finds that during periods of abnormal  disruption  of
the  market caused by strikes, power failures, severe shortages or other
extraordinary adverse circumstances, some parties within  the  chain  of
distribution  of consumer goods have taken unfair advantage of consumers
by charging grossly excessive prices for essential  consumer  goods  and
services.
  In  order to prevent any party within the chain of distribution of any
consumer goods from taking unfair advantage of consumers during abnormal
disruptions of the market, the  legislature  declares  that  the  public
interest  requires  that  such conduct be prohibited and made subject to
civil penalties.
  2. During any abnormal disruption of the market for consumer goods and
services vital and necessary for  the  health,  safety  and  welfare  of
consumers,  no  party  within the chain of distribution of such consumer
goods or services or both shall sell or offer to sell any such goods  or
services  or  both  for  an  amount  which  represents an unconscionably
excessive price. For purposes of  this  section,  the  phrase  "abnormal
disruption  of  the market" shall mean any change in the market, whether
actual or imminently  threatened,  resulting  from  stress  of  weather,
convulsion  of  nature,  failure  or shortage of electric power or other
source of energy, strike, civil disorder, war, military action, national
or local emergency, or other cause of  an  abnormal  disruption  of  the
market  which  results in the declaration of a state of emergency by the
governor. For the purposes of this section, the term consumer goods  and
services  shall  mean  those  used,  bought  or  rendered  primarily for
personal, family or household purposes. This prohibition shall apply  to
all   parties   within   the   chain   of  distribution,  including  any
manufacturer, supplier, wholesaler,  distributor  or  retail  seller  of
consumer goods or services or both sold by one party to another when the
product  sold was located in the state prior to the sale. Consumer goods
and services shall also include any repairs made by any party within the
chain of distribution of consumer goods  on  an  emergency  basis  as  a
result of such abnormal disruption of the market.
  3.  Whether  a  price is unconscionably excessive is a question of law
for the court.
  (a) The court's determination that a violation  of  this  section  has
occurred  shall  be  based on any of the following factors: (i) that the
amount of the excess in price is unconscionably extreme;  or  (ii)  that
there  was  an  exercise  of unfair leverage or unconscionable means; or
(iii) a combination of both factors in subparagraphs  (i)  and  (ii)  of
this paragraph.
  (b)  In  any proceeding commenced pursuant to subdivision four of this
section, prima facie proof that a violation of this section has occurred
shall include evidence that
  (i) the amount charged represents a gross disparity between the  price
of  the  goods or services which were the subject of the transaction and
their value measured by the  price  at  which  such  consumer  goods  or
services  were  sold  or  offered for sale by the defendant in the usual
course of business immediately  prior  to  the  onset  of  the  abnormal
disruption of the market or
  (ii)  the  amount charged grossly exceeded the price at which the same
or similar goods or services were readily obtainable by other  consumers
in  the  trade  area.  A  defendant  may  rebut  a prima facie case with
evidence that additional costs not within the control of  the  defendant
were imposed on the defendant for the goods or services.
  4.  Where a violation of this section is alleged to have occurred, the
attorney general may apply in the name of the People of the State of New

York to the supreme court of the State of New York within  the  judicial
district  in  which  such  violations  are  alleged to have occurred, on
notice of five days, for an order enjoining or restraining commission or
continuance  of  the  alleged unlawful acts. In any such proceeding, the
court  shall  impose  a  civil  penalty  in  an  amount  not  to  exceed
twenty-five  thousand  dollars and, where appropriate, order restitution
to aggrieved consumers.