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Bill

Bill

SB 1188

price regulation; abnormal market disruptions

57th Legislature - First Regular Session Introduced by Lela Alston and 8 co-sponsors

Arizona would authorize temporary price caps on essential goods and services during emergencies to combat price gouging, balancing consumer protection against potential supply chain disruptions.

Senate Second Reading
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Bill Summary · SB 1188

Legislative bill overview

SB 1188 would authorize Arizona to implement price regulations during abnormal market disruptions, such as natural disasters, emergencies, or supply chain crises. The bill establishes a framework allowing the state to temporarily cap prices on essential goods and services to prevent price gouging when normal market conditions are disrupted.

Why is this important

Price gouging during emergencies can create severe hardship for consumers, particularly low-income households, by making essential goods unaffordable during crises when people are most vulnerable. However, price controls also raise economic concerns about potential supply shortages, reduced incentives for businesses to stock inventory, and market distortions. This bill reflects ongoing policy tension between consumer protection and free-market principles.

Potential points of contention

  • Definition and triggers: Determining what constitutes an "abnormal market disruption" and who decides when price controls activate could be contentious—vague standards might enable overreach or underreaction.
  • Economic effects: Critics may argue price caps discourage suppliers from maintaining adequate inventory during crises or incentivize hoarding, potentially worsening shortages rather than preventing them.
  • Duration and scope: Questions about how long price controls remain in effect, which products/services qualify, and acceptable profit margins will likely generate debate between consumer advocates and business interests.

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

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