FOR IMMEDIATE RELEASE:
May 6, 2013

Assembly Bill Empowers Victims of
Price Gouging During Emergencies


Assembly Speaker Sheldon Silver and Consumer Affairs and Protection Committee Chair Jeffrey Dinowitz today announced passage of legislation that would give the right to sue to those who fall victim to price gouging in times of emergency such as the devastation caused by Superstorm Sandy.

This bill (A.311/Dinowitz) provides a crucial legal option for such victims. Under current law, only the State Attorney General is empowered to bring legal action against violators of the price gouging statute. This bill would leave those powers intact, but would also permit individual victims of price gouging to sue unscrupulous businesses directly.

"Inflating the price of goods such as batteries, generators, groceries, and bottled water during times of emergency is a despicably predatory act," said Silver. "In passing this bill, the Assembly is voicing our support for a consumer's right to seek compensation following the contemptible act of price gouging during emergencies."

The bill sponsor, Assemblyman Jeffrey Dinowitz (D-Bronx), said of the measure, "Despite the hard work of the Attorney General, the current enforcement provisions of the price gouging statute are clearly falling short. This measure empowers private citizens and offers needed tools in the fight against those who prey on consumers during times of misfortune."

In addition to the right of action granted to the Attorney General, this legislation gives victims of unlawful price gouging the right to sue for injunctive relief, and/or recovery of actual damages or $1,000, whichever is greater. It also permits the court to award an additional penalty of up to $5,000 for a willful or knowing violation and reasonable attorney's fees.