S115-2011 Actions

• Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
• Mar 31, 2011: COMMITTEE DISCHARGED AND COMMITTED TO CONSUMER PROTECTION
• Feb 22, 2011: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
• Jan 5, 2011: REFERRED TO AGRICULTURE

S115-2011 Memo

BILL NUMBER:S115

TITLE OF BILL:              REVISED 12/30/11

An act
to amend the agriculture and markets law, in relation to kosher for
Passover product price gouging

PURPOSE:

To prohibit "price gouging" of kosher Passover products by
manufacturers, distributors and retailers who sell such kosher
products, during the Jewish Passover season.

SUMMARY OF PROVISIONS:

Section 1 - Amends the Agriculture and Markets Law by adding a new
section 201-i.
Prohibits manufacturers, distributors and retailers of Kosher for
Passover products from offering to sell such products at an excessive
price, during the Passover season. Authorizes the Department of
Agriculture and Markets to investigate instances of Kosher for
Passover product price gouging during the Passover season. Requires
such investigation to include an annual Passover price survey to
examine the prices of Kosher for Passover products, before, during
and after the Passover season. Authorizes the court to impose a civil
penalty not to exceed $10,000, and where appropriate, order
restitution to aggrieved consumers. Directs the Commissioner of
Agriculture and Markets to promulgate the rules and regulations
necessary to implement this law, and establish a "Kosher for Passover
Products Hotline" for consumers to report complaints of "price
gouging".

Section 2 - Effective Date

EXISTING LAW:

Current law does not address the issue of Kosher for Passover product
"price gouging".

JUSTIFICATION:

During the observance of Passover, many manufacturers, distributors
and retailers inflate their prices for Kosher Passover products. The
former Director of the Consumer Protection Board, Tim Carey,
conducted a 1997 product survey which found significant disparities
in the pricing of Kosher Passover products from store-to-store and
region-to-region. These unfair pricing practices continue today. New
York State has a significantly large Jewish population. "Price
gouging" of Kosher Products during Passover, is not only an
unscrupulous business practice, but it targets
Jewish consumers at a time when the demand for such products is at its
highest, and forces them to endure this unfair pricing. This bill
would eliminate such "price gouging" and enhance consumer protections
during the time when the consumer's demand for Kosher Passover
Products is at its peak.


LEGISLATIVE HISTORY:

2011:     S.115  - Discharged from Agriculture and Committed
          to Consumer Protection
2009-10:  S.3122 - Referred to Consumer Protection
2007-08:  S.768  - Referred to Consumer Protection
2005-06:  S.822  - Referred to Consumer Protection
2003-04:  S.4367 - Referred to Consumer Protection

FISCAL IMPLICATIONS:

None to State or Local Government.

EFFECTIVE DATE:

The sixtieth day after it shall have become a law.

S115-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          115
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
 printed to be committed to the Committee on Agriculture
 

AN ACT to amend the agriculture and markets law, in relation  to  kosher
 for Passover product price gouging
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The agriculture and markets law is amended by adding a  new
 section 201-i to read as follows:

 

S  201-I.  KOSHER  FOR  PASSOVER  PRODUCT PRICE GOUGING. 1. DURING THE
 PASSOVER SEASON, NO PARTY WITHIN THE CHAIN OF DISTRIBUTION OF KOSHER FOR
 PASSOVER PRODUCTS SHALL SELL OR OFFER TO SELL ANY SUCH PRODUCTS  FOR  AN
 AMOUNT  WHICH  REPRESENTS AN UNCONSCIONABLY EXCESSIVE PRICE. THE DEPART
 MENT IS HEREBY AUTHORIZED TO INVESTIGATE INSTANCES OF KOSHER  FOR  PASS
 OVER  PRODUCT  PRICE  GOUGING  DURING THE PASSOVER SEASON. SUCH INVESTI
 GATION SHALL INCLUDE, BUT NOT BE LIMITED TO, AN  ANNUAL  PASSOVER  PRICE
 SURVEY  TO  EXAMINE  THE  PRICES OF KOSHER FOR PASSOVER PRODUCTS BEFORE,
 DURING AND AFTER THE PASSOVER SEASON.
 2. WHETHER A PRICE IS UNCONSCIONABLY EXCESSIVE IS A  QUESTION  OF  LAW
 FOR THE COURT.
 (A)  THE  COURT'S  DETERMINATION  THAT A VIOLATION OF THIS SECTION HAS
 OCCURRED SHALL BE BASED ON ANY OF THE FOLLOWING FACTORS:  (I)  THAT  THE
 AMOUNT  OF  THE  EXCESS IN PRICE IS UNCONSCIONABLY EXTREME; OR (II) THAT
 THERE WAS AN EXERCISE OF UNFAIR LEVERAGE  OR  UNCONSCIONABLE  MEANS;  OR
 (III)  A  COMBINATION  OF  BOTH FACTORS IN SUBPARAGRAPHS (I) AND (II) OF
 THIS PARAGRAPH.
 (B) IN ANY PROCEEDING COMMENCED PURSUANT TO SUBDIVISION THREE OF  THIS
 SECTION, PRIMA FACIE PROOF THAT A VIOLATION OF THIS SECTION HAS OCCURRED
 SHALL INCLUDE EVIDENCE THAT:

 (I)  THE AMOUNT CHARGED REPRESENTS A GROSS DISPARITY BETWEEN THE PRICE
 OF THE GOODS OR SERVICES WHICH WERE THE SUBJECT OF THE  TRANSACTION  AND
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03095-01-1
 
       S. 115                              2
 THEIR  VALUE  MEASURED  BY  THE  PRICE AT WHICH SUCH KOSHER FOR PASSOVER
 PRODUCTS WERE SOLD OR OFFERED FOR SALE BY THE  DEFENDANT  IN  THE  USUAL
 COURSE OF BUSINESS IMMEDIATELY PRIOR TO THE PASSOVER SEASON; OR
 (II)  THE  AMOUNT CHARGED GROSSLY EXCEEDED THE PRICE AT WHICH THE SAME
 OR SIMILAR KOSHER FOR PASSOVER PRODUCTS WERE READILY OBTAINABLE BY OTHER
 CONSUMERS IN THE TRADE AREA. A DEFENDANT MAY REBUT A  PRIMA  FACIE  CASE
 WITH  EVIDENCE  THAT  ADDITIONAL  COSTS  NOT  WITHIN  THE CONTROL OF THE
 DEFENDANT WERE IMPOSED ON THE DEFENDANT FOR THE PRODUCTS.
 3. WHERE A VIOLATION OF THIS SECTION IS ALLEGED TO HAVE OCCURRED,  THE
 ATTORNEY GENERAL MAY APPLY IN THE NAME OF THE PEOPLE OF THE STATE OF NEW
 YORK  TO  THE SUPREME COURT OF THE STATE OF NEW YORK WITHIN THE JUDICIAL
 DISTRICT IN WHICH SUCH VIOLATIONS  ARE  ALLEGED  TO  HAVE  OCCURRED,  ON
 NOTICE OF FIVE DAYS, FOR AN ORDER ENJOINING OR RESTRAINING COMMISSION OR
 CONTINUANCE  OF  THE  ALLEGED UNLAWFUL ACTS. IN ANY SUCH PROCEEDING, THE
 COURT SHALL IMPOSE A CIVIL PENALTY IN AN AMOUNT NOT TO EXCEED TEN  THOU
 SAND  DOLLARS  AND,  WHERE  APPROPRIATE,  ORDER RESTITUTION TO AGGRIEVED
 CONSUMERS.
 4. THE COMMISSIONER SHALL PROMULGATE ANY ADDITIONAL  RULES  AND  REGU
 LATIONS  AS  ARE  NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION,
 INCLUDING BUT NOT LIMITED TO THE ESTABLISHMENT OF A KOSHER FOR  PASSOVER
 PRODUCTS HOTLINE FOR CONSUMERS TO REPORT PRICE COMPLAINTS.
 

S  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

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