TFCA Legislative Success: Price Gouging Statute Reform
This legislation will:
- Split off the declaration of a state of emergency from the declaration of the price gouging statute
This means that whenever the TN or TEMA declares a state of emergency, the price gouging statute will NOT be triggered. Enacting the price gouging statute will require a separate declaration from the Governor. The declaration will last 15 days instead of the current thirty, and will be commodity specific and location specific.
- Makes clearer how business pricing may be conducted when the price gouging statute is declared, geared toward allowing market pricing
Establishes that a price increase is not grossly excessive if such increase was directly attributable to: (a) price increases in applicable regional, national, or international commodity markets; (b) pricing set forth in any pre-existing agreement, including stored and in-transit inventory; (c) additional costs imposed on the person by the supplier of the goods or services; or (d) additional costs for labor, services, or material used to provide the goods or services, including costs of replacement inventory, additional costs to transport goods or services, and additional labor charges.
- Prohibits local option
Meaning that a city or county cannot pass additional legislation to regulate price gouging during emergencies, leaving businesses with multiple standards to deal with