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Rhode Island enacts price-gouging ban

Legislation enacted in Rhode Island prohibits profiteering during a declared state of emergency. The law is designed to protect consumers from price gouging similar to that which occurred at gas stations across the country immediately after the 9/11 attacks.

It became law June 11 without Gov. Donald Carcieri’s signature.

The new law bans any person or corporation from raising the price of any item during or immediately before a state of emergency declared by the state or federal government.

Under the new law, violators could face fines up to $100. The legislation, however, allows for fluctuations in price that occur during the normal course of business.

“This legislation has no effect on prices outside states of emergency, which don’t occur often and rarely last more than a couple of days. It is meant only to protect against price gouging during a time when supplies are most needed,” Sen. Daniel Connors said in a statement.

Similar laws are in place in about 30 states.

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