(The Center Square) – Legislation that goes after price gougers after a natural disaster in Illinois is itself being called a disaster.
The measure, Senate Bill 1932, would prohibit unjustified price increases on essential goods and services in disaster areas for 45 days after the governor or U.S. president declares a state of emergency.
“Tornadoes are common in Illinois, so imagine one destroys your home and you go to the store to purchase diapers only to find the price has tripled,” said the bill’s sponsor, state Sen. Suzy Glowiak Hilton, D-Western Springs. “For some, that’s just not feasible.”
The bill says a price increase of 20% or more during a disaster is considered unconscionably high, unless it can be attributed to increased costs on behalf of the seller. Items covered by the bill include building materials, food, medical and emergency supplies, and repair, storage and transportation services.
State Sen. Jason Plummer, R-Edwardsville, has a problem with that price increase threshold.
“If you look at any business model, 20% swings in insurance, 20% swings in commodity products, 20% swings in all kinds of things happen regularly,” said Plummer.
While 39 states have regulations against price gouging during disasters, Illinois limits its protections to excessive costs of petroleum products.
Plummer said sometimes things sound good in theory and they cause disasters in practice, and this piece of legislation is exactly that.
“You’re going to turn the attorney general’s office and who knows who else loose on small and medium businesses around the state,” said Plummer. “It’s well intended but this is going to be a disaster for the people trying to provide goods and services in all our districts, and it’s going to create a litigation nightmare for them.”
The bill passed the Senate and is now headed to the House for consideration.
