Strengthening Price Gouging Laws

price
January 28, 2021
Many of you have reported to me absurd prices for certain goods after the pandemic began. Yesterday, I joined Attorney General William Tong to announce new legislation strengthening our state's price gouging laws to prevent this.  Our current law falls short of protecting Connecticut's consumers, and these shortcomings became prevalent during the COVID-19 pandemic.

While the Office of the Attorney General received over 750 COVID-related price gouging complaints last year, limitations in existing price gouging statutes curtailed the state’s ability to crack down on some of the worst actors that sought to take advantage of severe shortages in protective equipment and essential goods.
"The state will catch you and the state will stop you, and you’re going to regret it for a long long time because you will have to give back not only every penny you earned, but then some." - Rep. D'Agostino
The proposed legislation addresses all three of these shortcomings by:
  • Expanding Beyond Retail: Amending the price gouging statute to apply up and down the entire supply chain will expand and strengthen our ability to combat price gouging behavior.
  • Clearly Defining Price Gouging Behavior: Defining price gouging to prohibit the sale of certain goods or services “for an amount which represents an unconscionably excessive price” – using a test for unconscionability that we already use in other laws and that is familiar to courts.
  • Including Rentals and Leases: Clarifying the applicability of the statute, joining other states that specify it is unlawful to rent or lease products and services at an unconscionable price.

As I said yesterday, if you are thinking about taking advantage of people during this pandemic, do not do it.  The state will find you, the state will catch you and the state will stop you, and you’re going to regret it for a long, long time.
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The General Law Committee held a hearing this morning where Attorney General Tong testified in favor of the proposed legislation. If you missed the hearing, you can watch the recording here.