In response to recent spikes in fuel prices, the Pennsylvania Senate has advanced an effort to permit the state’s Attorney General to investigate complaints of price gouging during disasters and impose penalties.
Attorney General Tom Corbett told The Patriot News his office has received more than 1,400 complaints about skyrocketing fuel prices in recent weeks.
Senators voted by unanimous consent Sept. 21 to forward the bill to the state’s House for further consideration.
Sponsored by Sen. Mary Jo White, R-Franklin, the bill would prohibit “unconscionably excessive” pricing of such products as gasoline and diesel fuel during a declared state of emergency. It would expire 30 days after the declaration.
The measure – SB450 – would presume a vendor was price gouging if they could not explain a price increase of 20 percent or more over the average price for the same goods or services available in the affected area one week before an emergency was declared.
Anyone found in violation would face up to a $10,000 fine, per occurrence. Existing law limits fines to $1,000.
The rule would not apply to price increases caused by additional expenses, such as replacement costs, taxes and transportation.
Twenty-three states already have some type of price gouging ban with many others pursuing their own rules.
Florida and Tennessee have filed lawsuits alleging price gouging since Katrina hit the Gulf Coast and are seeing lower pump prices as a result, The Associated Press reported.