In an effort to protect consumers against predatory pricing, the Louisiana Senate has approved a bill that would give the state’s attorney general more power to go after price gougers.
Senators voted 22-14 Monday, Nov. 14, to advance a measure that would enable Louisiana’s attorney general to shut down businesses if the office determines they are jeopardizing public safety or welfare during an emergency declared by the governor.
Sponsored by Sen. Ed Murray, D-New Orleans, the bill would require the attorney general to explain the reason for “cease and desist” orders issued under the law.
“This is something to protect our people in a natural disaster,” Murray told The Times-Picayune of New Orleans.
Existing Louisiana law describes price gouging on goods and services when the cost “grossly exceeds” the ordinary charges for comparable items in the same market. The law recognizes that the cost of providing services could increase during emergency situations.
The National Conference of State Legislatures reports 27 states have some type of price gouging ban with many others pursuing their own rules. The laws in many of those states are triggered by emergency declarations.
SB52 now heads to the House for further consideration.