Anti-Price Gouging Bill Clears Minnesota House

(KNSI) — The Minnesota House passed a bill preventing price gouging during times of emergency.

The bill’s author, Representative Zach Stephenson, said it’s meant to protect consumers: “During times of crisis, the last thing Minnesotans deserve are bad actors seeking to profit off of the needs and fears of others. Price gouging is a morally repugnant practice, and it hurts those who have been most impacted by crises; it’s time for our state to stand up for each other and hold these bad actors accountable.”

Some say raising prices on certain goods and services is necessary to stave off hoarding and people buying things they don’t need. They also say the rules of what constitutes price gouging need to be more specific, but there’s no real good answer for how to handle it. If a merchant leaves prices where they are, the shelves will be cleared, and they won’t know when they’ll get another shipment. Only the truly desperate would be willing to fork over $20 for a case of water, but it also shuts out those of lesser means who also need the water but can’t pay the high price.

This bill prevents a person from selling or offering to sell a consumer good or service for an amount that represents “an unconscionably excessive price” during an “abnormal market disruption,” which means a change in the market resulting from a disaster or emergency or an event that causes the governor or president to declare a state of emergency. The price ceiling would be set at a maximum of a 30% increase within a seven day period.

Stephenson said people can’t be allowed to “enrich themselves off the misery of others.” He says it’s wrong, and the bill calls for recourse for victims.

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