A bill to prohibit excessive pricing for certain lodgings during a declared state of emergency; to provide remedies and penalties; and to provide for the powers and duties of certain state and local governmental officers and entities.
The proposed legislative package aims to prevent so-called "price gouging" for essential commodities, lodging, energy, and emergency services during declared states of emergency.
HB 5895 defines key terms such as "building materials," "consumer food items," "emergency supplies," and "medical supplies," and establishes that an "excessively increased price" is one that exceeds a 10% increase over pre-emergency prices unless justified by increased costs. The bill prohibits businesses from charging grossly excessive prices for these items during or shortly after an emergency declaration.
HB 5896 defines "excessively increased price" as a price disparity exceeding 10% compared to pre-emergency rates unless justified by increased costs, pre-existing discounts, or seasonal adjustments. The bill outlines the types of lodgings covered, including hotels, bed and breakfasts, and campgrounds, and specifies that a state of emergency can result from various disasters or threats. During or shortly after such emergencies, lodging providers are prohibited from charging grossly excessive prices or offering lodgings at such rates.
HB 5897 defines "energy product or service" as gasoline, propane, or home heating oil, excluding those regulated by the Michigan Public Service Commission. It prohibits businesses from charging prices that are grossly in excess of pre-disruption prices or that demonstrate an unjustified disparity of more than 10%, unless the price increase is due to higher costs or pre-existing discounts.
All three bills grant the attorney general and local prosecutors the authority to investigate suspected violations, including the power to demand documents and testimony. The attorney general can also bring class actions to recover damages for affected consumers and seek injunctive relief and civil penalties, with fines up to $10,000 for individuals and $1,000,000 for entities per violation. Additionally, the bill allows for criminal penalties, including imprisonment and fines, for intentional violations. The legislation ensures that remedies are cumulative and does not limit the attorney general's powers under other state laws, such as the Michigan Consumer Protection Act.
The three bills will only take effect if the others bills are also enacted.
Introduced
by
Referred to the Committee on Economic Development and Small Business
