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S1309......................................................by STATE AFFAIRS
DISASTERS - Amends existing law to prohibit a person from taking advantage
of a declared state of emergency or disaster by selling fuel, food,
medicine or another necessity at an exorbitant or excessive price.
01/21 Senate intro - 1st rdg - to printing
01/22 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1309
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO UNFAIR METHODS AND PRACTICES UNDER THE CONSUMER PROTECTION ACT;
3 PROVIDING LEGISLATIVE INTENT; AND AMENDING SECTION 48-603, IDAHO CODE, TO
4 PROHIBIT A PERSON FROM TAKING ADVANTAGE OF A DECLARED STATE OF EMERGENCY
5 OR DISASTER BY SELLING FUEL, FOOD, MEDICINE OR ANOTHER NECESSITY AT AN
6 EXORBITANT OR EXCESSIVE PRICE FOR THE DURATION OF THE DECLARATION OF EMER-
7 GENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. LEGISLATIVE INTENT. The Legislature finds that during emergen-
10 cies or disasters, some persons may take unfair advantage of consumers by
11 greatly increasing prices for essential goods and services. While the pricing
12 of consumer goods and services is generally best left to the marketplace under
13 ordinary conditions, when a declared state of emergency or disaster results in
14 abnormal disruptions of the market, the public interest requires that exces-
15 sive and unjustified increases in the prices of essential consumer goods and
16 services be prohibited.
17 SECTION 2. That Section 48-603, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 48-603. UNFAIR METHODS AND PRACTICES. The following unfair methods of
20 competition and unfair or deceptive acts or practices in the conduct of any
21 trade or commerce are hereby declared to be unlawful, where a person knows, or
22 in the exercise of due care should know, that he has in the past, or is:
23 (1) Passing off goods or services as those of another;
24 (2) Causing likelihood of confusion or of misunderstanding as to the
25 source, sponsorship, approval, or certification of goods or services;
26 (3) Causing likelihood of confusion or of misunderstanding as to affilia-
27 tion, connection, or association with, or certification by, another;
28 (4) Using deceptive representations or designations of geographic origin
29 in connection with goods or services;
30 (5) Representing that goods or services have sponsorship, approval, char-
31 acteristics, ingredients, uses, benefits, or quantities that they do not have
32 or that a person has a sponsorship, approval, status, affiliation, connection,
33 qualifications or license that he does not have;
34 (6) Representing that goods are original or new if they are deteriorated,
35 altered, reconditioned, reclaimed, used, or secondhand;
36 (7) Representing that goods or services are of a particular standard,
37 quality, or grade, or that goods are of a particular style or model, if they
38 are of another;
39 (8) Disparaging the goods, services, or business of another by false or
40 misleading representation of fact;
41 (9) Advertising goods or services with intent not to sell them as adver-
42 tised;
2
1 (10) Advertising goods or services with intent not to supply reasonably
2 expectable public demand, unless the advertisement discloses a limitation of
3 quantity;
4 (11) Making false or misleading statements of fact concerning the reasons
5 for, existence of, or amounts of price reductions;
6 (12) Obtaining the signature of the buyer to a contract when it contains
7 blank spaces to be filled in after it has been signed;
8 (13) Failing to deliver to the consumer at the time of the consumer's sig-
9 nature a legible copy of the contract or of any other document which the
10 seller or lender has required or requested the buyer to sign, and which he has
11 signed, during or after the contract negotiation;
12 (14) Making false or misleading statements of fact concerning the age,
13 extent of use, or mileage of any goods;
14 (15) Promising or offering to pay, credit or allow to any buyer or lessee,
15 any compensation or reward in consideration of his giving to the seller or
16 lessor the names of prospective purchasers or lessees, or otherwise aiding the
17 seller or lessor in making a sale or lease to another person, if the earning
18 of the rebate, discount or other value is contingent upon the occurrence of an
19 event subsequent to the time the buyer or lessee agrees to buy or lease;
20 (16) Representing that services, replacements or repairs are needed if
21 they are not needed, or providing services, replacements or repairs that are
22 not needed;
23 (17) Engaging in any act or practice which is otherwise misleading, false,
24 or deceptive to the consumer;
25 (18) Engaging in any unconscionable method, act or practice in the conduct
26 of trade or commerce, as provided in section 48-603C, Idaho Code, provided,
27 however, that the provisions of this subsection shall not apply to a regulated
28 lender as that term is defined in subsection (37) of section 28-41-301, Idaho
29 Code;
30 (19) Taking advantage of a disaster or emergency declared by the governor
31 under chapter 10, title 46, Idaho Code, or the president of the United States
32 under the provisions of the disaster relief act of 1974, 42 U.S.C. section
33 5121 et seq., by selling or leasing, or offering to sell or lease fuel, food,
34 medicine, or another necessity at an exorbitant or excessive price; provided
35 however, this subsection shall apply only to the location and for the duration
36 of the declaration of emergency.
STATEMENT OF PURPOSE
RS 11501C1
This proposed legislation addresses price gouging of fuel, food,
medicine, and other necessities during times of declared state or
national emergencies. Currently, Idaho law has no provision
addressing this issue. While the pricing of consumer goods and
services is generally best left to the marketplace, when a declared
state of emergency or disaster results in abnormal disruptions of
the market, the public interest requires that excessive and
unjustified increases in the prices of essential consumer goods
and services be prohibited for the limited duration of the declared
emergency.
FISCAL IMPACT
There is no fiscal impact to the general fund. Enforcement of
this section will be by the Office of the Attorney General,
Consumer Protection Unit, utilizing existing resources.
CONTACT
Name: Steve Tobiason, Phone:334-4151
Name: Brett Delange, Phone: 334-2424
Agency: Office of The Attorney General
Statement of Purpose/Fiscal Impact S 1309