NY Gen Bus L § 396-R (2021)
2021 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  goods  have  taken  unfair  advantage of the public by charging grossly excessive prices for essential goods and services.   In order to prevent any party within the chain of distribution of  any goods  from  taking  unfair  advantage  of  the  public  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 goods and services vital and necessary for the health, safety and welfare of  consumers  or the  general  public,  no party within the chain of distribution of such 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 goods and  services shall  include  (a) consumer goods and services used, bought or rendered primarily for personal, family  or  household  purposes,  (b)  essential medical  supplies  and  services  used  for  the care, cure, mitigation, treatment or prevention of any illness or disease,  and  (c)  any  other essential  goods  and  services used to promote the health or welfare of the public. This prohibition shall apply to all parties within the chain of  distribution,  including  any  manufacturer,  supplier,  wholesaler, distributor  or  retail  seller of goods or services or both sold by one party to another when the product sold was located in the state prior to the sale. Goods and services shall also include any repairs made by  any party within the chain of distribution of 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 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 in the trade area.  (c) A defendant may rebut a prima facie case with  evidence  that  (1) the  increase  in the amount charged preserves the margin of profit that the defendant received for the same  goods  or  services  prior  to  the  abnormal disruption of the market or (2) 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 per violation  or  three  times  the  gross receipts  for  the relevant goods or services, whichever is greater and, where appropriate, order restitution to aggrieved parties.   5. The attorney general may promulgate such rules and  regulations  as are necessary to effectuate and enforce the provisions of this section.