An Act To PreventPrice Gouging in the Sale of Milk _ Reference to the Committee on Agriculture, Conservation and Forestry suggested and ordered printed. Present~d by Senator MILLS of Somerset.
Maine Legislature, Session 124, LD 1182
Committee: Agriculture, Conservation and Forestry
Sponsors: MARRACHE
Amends: 7 MRSA §2954

MAINE STATE LEGISLATURE 
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124th MAl E LEGISLATURE 
Legislative Document 
No. 1182 
S.P.430 
In Senate, March 25,2009 
An Act To PreventPrice Gouging in the Sale of Milk' 
_ Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
Present~d by Senator MILLS of Somerset. 
Cosponsored by Senator: MARRACHE of Kennebec. 
Printed on recycled paper 
9rf)(J~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 7 MRSA §2954~JI) is enacted to read: 
§2954-D. Price gouging in the sale of milk 
1. Unconscionably excessive price prohibited. A person may not sell or offer to 
sell Class I fluid milk for an unconscionably excessive price, as determined pursuant to 
subsection 3. 
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2. Commission may investigate and issue orders; appeal. Whenever the retail 
price to consumers for Class I fluid milk exceeds twice what is paid to producers of the 
milk, the commission may investigate to determine<whether the price is unconscionably 
excessive, as detennined pursuant to subsection J. If it finds probable cause to believe 
that the price is unconscionably excessive, the commission may after notice and hearing 
make fin<dings and issue orders to prohibit such practices. Any person aggrieved by an 
order of the cOllUnission may appeal to the Supenor Court. 
3. Evidence of unconscionably excessive price. An unconscionablY excessive price 
for Class I fluid milk is evidenced by: 
< A. A disparity between the retail price and the producers; price that grossly exceeds a 
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reasonable rate of return; 
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B. Significant increases in retail price that are not the result of an iricrease paid to 
producers for raw milk and that are not otherwise justified by changes in cost to the 
dealer or store; 
C. Decreases in prices paid to producers that do not yield corresponding decreases in 
retail prices for the same milk; 
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D. < Elevated prices or changes in price that appear to reflect price-fixing or 
combination activity by 2 or more stores or dealers; or 
E. Elevated prices that appear to result from regional market share dominance by a 
store or dealer or by a combination of stores or dealers. 
) 4. Penalties. For a violation of its orders, the commission may assess a penalty of 
up to $100 per day for each violation. Proceeds from the penalties must be remitted to 
the Women, Infants and Children Special Supplemental Food Program of the federal 
Child Nutrition Act of 1966 to be used to purchase milk and milk products for clients of 
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the program. 
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SUMMARY 
This bill prohibits the sale of milk for an unconscionably excessive price. 
It 
authorizes the Maine Milk Commission to investigate to detennine whether the price is 
unconscionably excessive whenever the retail price to consumers for milk exceeds twice 
what is paid to producers of the milk. If the commissiori finds probable cause to believe 
that the price is unconscionabiy excessive, it may after notice and hearing make findings 
and issue orders to prohibit such practices. The bill specifies certain circumstan,ces that 
Page I - 124LRIS43(OI)-1 
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are evidence of an unconscionably excessive price. It authorizes the commission' to . 
assess a penalty of up to $100 per day for each violation with the proceeds to be remitted 
to the Women, Infants and Children Special Supplemental Food Program to be used to 
purchase milk and milk products. for clients of the program.