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Bill

Bill

SB 1932

FRAUD-EMERGENCY PRICE GOUGING

104th Regular Session Introduced by Dee Avelar and 4 co-sponsors

Illinois SB 1932 bars unconscionable price hikes on essentials in disaster areas for 45 days after a disaster declaration, with AG enforcement.

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Bill Summary · SB 1932

Summary — SB 1932 (Price Gouging During a Disaster)

Status snapshot
- Senate bill introduced Feb. 6, 2025 (Sen. Suzy Glowiak Hilton). Engrossed version passed the Senate and arrived in the House. House Committee Amendment No. 1 (Rep. Dagmara Avelar) filed 5/5/2025 and is currently Rule 19(c) / re‑referred to House Rules Committee. Companion: HB 331.

Purpose
- To make it an unlawful practice under the Illinois Consumer Fraud and Deceptive Business Practices Act for sellers to charge “unconscionably high” prices for essential goods and services in a designated disaster area for a limited period after an official disaster declaration.

Key provisions
- Effective period: applies for 45 days after a disaster declaration by the President or the Governor, or during any official continuation/extension of that period.
- Covered items and services: consumer food items/goods; emergency supplies (examples listed: water, flashlights, batteries, plywood, nails, hammers, blankets, soaps, diapers, toiletries, temporary shelters); medical supplies; building materials; home heating oil/fuel/gasoline/other motor fuels (Engrossed version); housing and lodging; transportation, freight and storage services; repair or reconstruction services; and “any other necessity.”
- Definition of “unconscionably high” price: a price is unconscionably high if (1) the amount charged represents a gross disparity with the pre‑disaster price, measured against either the seller’s customary price immediately before the disaster or, if the seller did not previously sell the item, the price charged by a similarly situated seller immediately before the disaster; and (2) the disparity is not directly attributable to supplier price increases, additional labor/material costs, or other legitimate cost drivers.
- Defenses/exceptions: price changes are not unconscionably high if directly attributable to increased supplier charges or additional labor/material costs; if the pre‑disaster price was a reduced promotional price the seller may return to the normal price; (House Amendment adds) an additional defense for increases consistent with seasonal pricing using the prior 3 years’ historical data.
- Exclusion: the House Amendment and Engrossed text state the section does not apply to the sale of petroleum products as defined in administrative rule 14 Ill. Adm. Code 465 (House language explicitly excludes petroleum; the Engrossed version at times lists fuels as covered — see Versions below).
- Rebuttable presumption (Engrossed / Senate amendment): a price increase of 20% or more is presumptively unconscionable unless attributable to supplier/labor/material cost increases. Note: House Amendment No. 1 removes this 20% rebuttable‑presumption language.

Enforcement and related changes
- Enforcement authority is set under the Consumer Fraud Act (the synopsis indicates enforcement by the Illinois Attorney General). The bill text provided references procedures for determining unlawfully high prices but does not include civil penalty amounts in the excerpt.
- The bill also proposes amendments to the Freedom of Information Act (5 ILCS 140/7.5) to exempt specified information relevant to the measure; the provided text is truncated and does not fully specify which records would be exempt.

Who would be affected
- Consumers in declared disaster areas would have statutory protection against sudden price spikes for essentials.
- Retailers, contractors, haulers, hotels, pharmacies, medical suppliers, builders and other sellers of the listed goods/services would need to document cost bases, supplier costs, historical pricing, and seasonality to support lawful price increases.
- The Attorney General and possibly local authorities would have investigatory/enforcement roles.

Procedural/next steps
- House Amendment No. 1 was filed 5/5/2025 and re‑referred to House Rules Committee (Rule 19(c)). If reported from Rules, the bill would proceed to a full House vote and, if passed, to the Governor.

Potential impacts to consider
- Increased compliance and recordkeeping burdens on sellers to justify post‑disaster price increases.
- Greater consumer protections during disasters, with the scope and ease of enforcement depending on whether the 20% rebuttable presumption remains (it is present in the Engrossed/Senate-amended text but removed in the House amendment).
- Possible litigation over what constitutes a “gross disparity” and whether cost increases are “directly attributable” to suppliers or labor.

Notes on versions
- Engrossed / Senate‑amended text included a 20% rebuttable presumption that a price increase of 20%+ is unconscionable (unless attributable to cost increases).
- House Committee Amendment No. 1 (filed 5/5/2025) removes the 20% presumption and expands allowable defenses (seasonal pricing based on 3 prior years). The bill’s final effect depends on which version (Senate vs. House amendment) is adopted.

Compiled from official sources — confirm details with the bill’s official record.

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