Bill Text: NY A01960 | 2017-2018 | General Assembly | Introduced


Bill Title: Prohibits price gouging on kosher for Passover products; authorizes the department of agriculture and markets to investigate instances of price gouging on such products and to conduct an annual Passover price survey to determine instances of price gouging; authorizes the attorney general to bring an action to stop the alleged price gouging and provides for a civil penalty of $10,000 for an instance of price gouging; establishes a defense to the charge.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-04-30 - enacting clause stricken [A01960 Detail]

Download: New_York-2017-A01960-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1960
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 17, 2017
                                       ___________
        Introduced  by  M.  of  A.  SEPULVEDA  --  read once and referred to the
          Committee on Agriculture
        AN ACT to amend the agriculture and markets law, in relation  to  kosher
          for Passover product price gouging
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The agriculture and markets law is amended by adding a  new
     2  section 201-j to read as follows:
     3    §  201-j.  Kosher  for  Passover  product price gouging. 1. During the
     4  Passover season, no party within the chain of distribution of kosher for
     5  Passover products shall sell or offer to sell any such products  for  an
     6  amount  which  represents an unconscionably excessive price. The depart-
     7  ment is hereby authorized to investigate instances of kosher  for  Pass-
     8  over  product  price  gouging  during the Passover season. Such investi-
     9  gation shall include, but not be limited to, an  annual  Passover  price
    10  survey  to  examine  the  prices of kosher for Passover products before,
    11  during and after the Passover season.
    12    2. Whether a price is unconscionably excessive is a  question  of  law
    13  for the court.
    14    (a)  The  court's  determination  that a violation of this section has
    15  occurred shall be based on any of the following factors:  (i)  that  the
    16  amount  of  the  excess in price is unconscionably extreme; or (ii) that
    17  there was an exercise of unfair leverage  or  unconscionable  means;  or
    18  (iii)  a  combination  of  both factors in subparagraphs (i) and (ii) of
    19  this paragraph.
    20    (b) In any proceeding commenced pursuant to subdivision three of  this
    21  section, prima facie proof that a violation of this section has occurred
    22  shall include evidence that:
    23    (i)  the amount charged represents a gross disparity between the price
    24  of the goods or services which were the subject of the  transaction  and
    25  their  value  measured  by  the  price at which such kosher for Passover
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07130-01-7

        A. 1960                             2
     1  products were sold or offered for sale by the  defendant  in  the  usual
     2  course of business immediately prior to the Passover season; or
     3    (ii)  the  amount charged grossly exceeded the price at which the same
     4  or similar kosher for Passover products were readily obtainable by other
     5  consumers in the trade area. A defendant may rebut a  prima  facie  case
     6  with  evidence  that  additional  costs  not  within  the control of the
     7  defendant were imposed on the defendant for the products.
     8    3. Where a violation of this section is alleged to have occurred,  the
     9  attorney general may apply in the name of the People of the State of New
    10  York  to  the supreme court of the State of New York within the judicial
    11  district in which such violations  are  alleged  to  have  occurred,  on
    12  notice of five days, for an order enjoining or restraining commission or
    13  continuance  of  the  alleged unlawful acts. In any such proceeding, the
    14  court shall impose a civil penalty in an amount not to exceed ten  thou-
    15  sand  dollars  and,  where  appropriate,  order restitution to aggrieved
    16  consumers.
    17    4. The commissioner shall promulgate any additional  rules  and  regu-
    18  lations  as  are  necessary to implement the provisions of this section,
    19  including but not limited to the establishment of a kosher for  Passover
    20  products hotline for consumers to report price complaints.
    21    §  2.  This  act  shall take effect on the sixtieth day after it shall
    22  have become a law.
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