Kentucky Gov. Ernie Fletcher signed a bill into law April 22 prohibiting 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 new law 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.

Under the bill, sponsored by Rep. Tommy Thompson, D-Owensboro, violators could face fines of up to $5,000 for a first offense. The fine could be as much as $10,000 for subsequent violations. 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.