Luther Proposes Anti-Price Gouging Legislation

Tuesday, September 05, 2006 at 9:35 PM

EDEN PRAIRIE - Citing extreme spikes in gas prices in recent months, DFL attorney general candidate Bill Luther has proposed enacting legislation to prohibit price gouging in Minnesota. Minnesota would join a majority of states which prohibit price gouging.

"It is time for Minnesota to join the rest of the country in protecting consumers during emergencies and disasters," Luther said. "Whether it is gasoline, food, or health care services, Minnesotans deserve to be protected from unscrupulous businesses who seek to take advantage of dire circumstances."

Roughly half of the states in the country have laws or regulations that prohibit price gouging. Currently Minnesota does not prohibit price gouging. Luther's legislation would be modeled after other states' statutes and proposed federal legislation endorsed by several state attorneys general.

The proposed legislation would prohibit any business from selling essential consumer goods or services, including gasoline, food and health care services at unconscionably excessive prices during an abnormal market disruption including national or state emergencies and disasters. If a business attempts to sell a product at a price 30 percent higher than the seven day average, they would be subject to civil penalties.

Luther said incidents such as the recent tornadoes in southern Minnesota, and the drought conditions in western and northwestern Minnesota might qualify as circumstances to enforce the proposed price gouging legislation.