NY AG announces plan to create new price gouging rules to stop pandemic profiteering

WASHINGTON— New York Attorney General Letitia James today announced plans to propose a rulemaking aimed at strengthening state-level prevention of price gouging. The rulemaking process includes a request for public comment until April 22, 2022.

Section 396-R of the New York General Business Law prohibits “unconscionably excessive pricing of essential goods and services during any abnormal disruption of the market.” However, there is growing evidence that corporations have been using the pandemic to increase prices.

The OAG is seeking to create a rulemaking that would implement new rules to increase protections for all New Yorkers from gouging at every level.

In response, Barry Lynn, executive director of the Open Markets Institute, issued the following statement:

“Today the NY OAG underscored the severity and scope of predatory price gouging by monopolists and other actors exploiting concentrated power. This is true across the country and the New York state action illustrates the importance of strong state-based enforcement targeting such illegal behavior.

“Open Markets applauds AG James and the rest of the NY OAG, and urges other states across the country to follow their lead in protecting our communities from harmful corporate profiteering during troubled times. We look forward to continuing the push for real price gouging protections on the federal level and in the legal sphere.”

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Open Markets Institute’s legal director, Sandeep Vaheesan, will be testifying next week before the House Committee on Financial Services about national price gouging, corporate profiteering, and supply chain bottlenecks.