Democrats in New York are proposing legislation that would cap the amount retailers can raise the price of medical supplies during a public health emergency at 10%, which they said would prevent items from being sold at exorbitant amounts when people need them most.
Lawmakers are hoping to approve the bill as soon as possible as consumers continue to struggle with alleged price-gouging related to the outbreak of COVID-19.
The measure is sponsored by Assemblywoman Nily Rozic, D-Queens, and State Sen. Brad Hoylman, D-Manhattan, who told reporters Wednesday he received a letter from a constituent who purchased a box of face masks at a hardware store for $97.98.
“This is an example of the fear and anxiety that’s partly being sown through retailers by price gouging,” Hoylman said.
The legislation would allow the New York Attorney General’s Office to seek civil action if a retailer is found to have raised the price of a medical item by more than 10% during the time of a public health emergency, which is declared by the governor.
Hoylman said that, so far, there hasn’t been any major pushback on the bill from his colleagues in the Senate.
“We’ve had a positive reception from Senate colleagues,” Hoylman said. “We haven't yet heard from leadership when this bill might be considered.”
Rozic, who was also at the press conference Wednesday, said the same. She said she’s heard about price gouging from residents in her district for weeks.
“In Flushing, alone, I can tell you anecdotally that people for weeks have been selling hand sanitizer and face masks way above the costs of what it normally would be,” Rozic said. “We’re here to say that is not okay.”
If a retailer is found to have violated the law, they could face a fine of up to $25,000 under the legislation and be ordered to pay restitution to the consumer, according to the bill.