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2004 SESSION

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HB 686 Post-Disaster Anti-Price Gouging Act; created.

Introduced by: Melanie L. Rapp | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED HOUSE:

Price gouging. Prohibits suppliers from selling, leasing, or licensing necessary goods and services during times of disaster at an unconscionable price. To determine whether a price increase is unconscionable, the court must consider, among other factors, whether the price charged by the supplier during the time of disaster grossly exceeded the price at which the same or similar goods or services were readily obtainable in the trade area during the 10 days prior to the time of disaster. A violation constitutes a prohibited practice under the Virginia Consumer Protection Act, though aggrieved persons will not be able to bring a private cause of action. This bill incorporates HB 971 and is identical to SB 242.

SUMMARY AS INTRODUCED:

Anti-price gouging. Adds a new chapter to Title 59.1 titled "Virginia Post-Disaster Anti-Price Gouging Act." The bill prohibits price gouging by suppliers selling, leasing, or licensing, or offering to sell, lease, or license, necessary goods and services during times of disaster. A time of disaster is the period of time in which a declaration of a state of emergency by the Governor or the President of the United States is in effect, or 30 days after the occurrence of the event that constitutes the disaster, whichever is shorter. To determine whether price gouging has occurred, the following must be considered: the prices charged by a supplier 10 days prior to the disaster; whether the price charged by the supplier during the time of disaster grossly exceeded the price at which the same or similar goods or services were readily obtainable in the trade area during the 10 days prior to the time of disaster; and whether the increase in the amount charged by the supplier was attributable solely to additional costs incurred by the supplier in connection with the sale of the goods or services. Violations are handled in the same manner as are other violations of the Virginia Consumer Protection Act except that no private cause of action is available.