State of Illinois
92nd General Assembly
Legislation

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92_HB5581

 
                                               LRB9215085ACcd

 1        AN ACT concerning price gouging.

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

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

 6        (815 ILCS 505/2MM new)
 7        Sec. 2MM.  Prohibition against unconscionable prices.
 8        (a)  As used  in  this  Section,  "commodity"  means  any
 9    goods, services, materials, merchandise, supplies, equipment,
10    resources,  or other article of commerce and includes without
11    limitation food, water, ice, chemicals,  petroleum  products,
12    and  lumber  necessary  for  consumption  or  use as a direct
13    result of the emergency.
14        (b)  Upon a declaration of a state of  emergency  by  the
15    Governor, it is unlawful and a violation of Section 2 of this
16    Act  for  a person or her or his agent or employee to rent or
17    sell or offer to rent or  sell  at  an  unconscionable  price
18    within  the area for which the state of emergency is declared
19    any  essential  commodity  including,  but  not  limited  to,
20    supplies,  services,  provisions,  or   equipment   that   is
21    necessary  for  consumption  or use as a direct result of the
22    emergency. This  prohibition  remains  in  effect  until  the
23    declaration expires or is terminated.
24        (c)  It  is unlawful and a violation of Section 2 of this
25    Act for any person to impose unconscionable  prices  for  the
26    rental or lease of any dwelling unit or self-storage facility
27    during a period of declared state of emergency.
28        (d)  It   is   prima  facie  evidence  that  a  price  is
29    unconscionable if:
30             (1)  the amount charged represents a gross disparity
31        between the price of the commodity or rental or lease  of
 
                            -2-                LRB9215085ACcd
 1        any  dwelling  unit  or self-storage facility that is the
 2        subject of the offer or transaction and the average price
 3        at which that commodity or dwelling unit or  self-storage
 4        facility was rented, leased, sold, or offered for rent or
 5        sale  in  the usual course of business during the 30 days
 6        immediately prior  to  the  declaration  of  a  state  of
 7        emergency,  and the increase in the amount charged is not
 8        attributable to additional costs incurred  in  connection
 9        with  the  rental  or  sale of the commodity or rental or
10        lease of any dwelling unit or  self-storage  facility  or
11        national or international market trends; or
12             (2)  the  amount charged grossly exceeds the average
13        price at which the same or similar commodity was  readily
14        obtainable   in   the  trade  area  during  the  30  days
15        immediately prior  to  the  declaration  of  a  state  of
16        emergency  and  the increase in the amount charged is not
17        attributable to additional costs incurred  in  connection
18        with  the  rental  or  sale of the commodity or rental or
19        lease of any dwelling unit or  self-storage  facility  or
20        national or international market trends.
21        (e)  A   price   increase   approved  by  an  appropriate
22    government agency shall not be a violation of this Section.
23        (f)  This Section shall not apply to  sales  by  growers,
24    producers,  or  processors of raw or processed food products,
25    except for retail sales of  such  products  to  the  ultimate
26    consumer within the area of the declared state of emergency.
27        (g)  Nothing  in  this  Section  shall  be interpreted to
28    preempt the  powers  of  local  government  except  that  the
29    evidentiary  standards and defenses contained in this Section
30    shall be the only evidentiary standards and defenses used  in
31    any  ordinance  adopted by local government to restrict price
32    gouging during a declared state of emergency.
33        (h)  Section 10a of this Act notwithstanding, nothing  in
34    this  Section  creates  a private cause of action in favor of
 
                            -3-                LRB9215085ACcd
 1    any person damaged by a violation of this Section.

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