SB1932eng 104TH GENERAL ASSEMBLY

SB1932 Engrossed LRB104 10202 SPS 20276 b

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2HHHH as follows:

(815 ILCS 505/2HHHH new)

Sec. 2HHHH. Price gouging during a disaster.

(a) As used in this Section:

"Building materials" means lumber, construction tools, windows, and anything else used in the building or rebuilding of property.

"Consumer food item or good" means any article that is used or intended for use as food, drink, confection, or condiment by a person or animal.

"Emergency supplies" includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soaps, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.

"Goods" means tangible chattels bought for use primarily for personal, family, or household purposes.

"Medical supplies" includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, masks, and antibacterial products.

"Repair or reconstruction services" means services performed by any person for repairs to residential or commercial property, of any type, that is damaged as a result of a disaster.

"Transportation, freight, or storage services" means services performed by any company that contracts to move, store, or transport personal or business property or that rents equipment for those purposes, including towing services.

(b) It is an unlawful practice within the meaning of this Act, for a period of 45 days after a disaster is declared by the President of the United States or the Governor or during the continuation period of the disaster if the period is extended by the President of the United States or the Governor, for any person to sell or offer to sell to a consumer, for an unconscionably high price, in the designated disaster area any consumer food items or goods; goods or services used for emergency cleanup or response; emergency supplies; medical supplies; cleaning supplies; building materials; housing; lodging; transportation, freight, or storage services; repair or reconstruction services; or any other necessity.

(c) For the purposes of this Section, a price is unconscionably high if:

(1) the amount charged represents a gross disparity between the price of the good or service; and

(A) the price at which the same good or service was sold or offered for sale by the person in the usual course of business immediately before the disaster declaration; or

(B) if the person did not sell or offer for sale the goods or services immediately before the disaster declaration, the price at which similar goods or services were offered for sale or sold by a similarly situated person in the usual course of business immediately before the disaster declaration; and

(2) the disparity is not directly attributable to increased prices charged by suppliers, additional costs for labor or materials to provide the good or service, or other increased costs not within the control of the person.

(d) For purposes of this Section, a price is not unconscionably high if:

(1) the increase in price is directly attributable to additional costs imposed on the person by the supplier of the goods or directly attributable to additional costs for labor or materials used to provide the services during the declared disaster; or

(2) if a good or service was offered at a reduced price by the person before the declared disaster, the price is the same as the price the person normally charges for the good or service.

(e) There is a rebuttable presumption that a price increase of 20% or more constitutes an unconscionably high price if it is not attributable to additional costs imposed on the person by the supplier of the goods or directly attributable to additional costs for labor or materials used to provide the services during the declared disaster.

(f) This Section does not apply to the sale of petroleum products as defined in 14 Ill. Adm. Code 465.