Business coalition reacts to Wolf’s veto of price gouging legislation

A coalition of Pennsylvania business and trade associations expressed disappointment following Gov. Tom Wolf’s veto of S.B. 1172, which would have amended the state’s Price Gouging Act.

“Governor Wolf’s decision leaves businesses, manufacturers and retailers across the Commonwealth potentially vulnerable to enforcement action from the Office of the Attorney General for unrelated price increases on consumer goods that may occur during emergencies and after a disaster declaration is terminated,” the coalition said in a statement.

Under the Price Gouging Act, when the governor issues a disaster declaration, price controls are automatically triggered. The Office of the Attorney General may take enforcement action against any business that increases prices during the duration of the declaration or in the 30 days that follow.

S.B. 1172 would have limited the duration of pricing restrictions to 15 days while allowing for extensions of up to 60 days. It would have also limited their scope to goods and services necessary for use or consumption. Also, it would have lowered the threshold for what constitutes an “unconscionably excessive” price to 10 percent or less above specified benchmarks or market and contract prices.

“The legislature worked together to shape the law to be focused and effective with this legislation. Senate Bill 1172 was supported 235-7 in the House and Senate combined, demonstrating that the vast majority of the General Assembly does not share the same concerns as the governor,” the coalition said. “A blanket veto of this overwhelmingly bipartisan legislation is the wrong move for consumers and businesses in our Commonwealth. We will continue to work with the legislature and governor to address this important issue.”

The coalition included the Pennsylvania Chamber of Business and Industry, Associated Petroleum Industries of PA, National Federation of Independent Business, Pennsylvania Builders Association, Pennsylvania Food Merchants Association, Pennsylvania Manufacturers Association, Pennsylvania Restaurant and Lodging Association and the Pennsylvania Retailers Association.