A Kentucky Senate panel is reviewing a consumer protection bill that would prohibit prices for basic needs such as food, fuel and housing from being raised more than 10 percent during a state of emergency or national threat.

The bill, sponsored by Rep. Tommy Thompson, D-Owensboro, is intended to protect consumers from excessively inflated prices, known as “price gouging,” when the U.S. threat level is at its highest point – “severe” – or when a state or federal emergency has been declared, Louisville’s WHAS TV reported. Similar laws are in place in 25 states.

Violators could be charged with a Class A misdemeanor for a first offense and a felony for two or more offenses. The legislation would, however, allow prices for these goods, or services such as repair work, to be increased by slightly more than the 10 percent limit if necessary to cover additional supplier, labor or material costs.

Thompson said consumers now have no protection in the law from price gouging during difficult times.

HB 471 “will protect Kentucky families from those unscrupulous people who would try to take advantage of them in times of emergency,” he told House lawmakers before they voted 91-0 to send the measure to the Senate. “It puts in place something that’s missing today, and that is a system whereby families have some recourse.”

The measure has been forwarded to the Senate Judiciary Committee.