WATCH: Price gouging measure criticized for being harmful to Illinois small businesses

(The Center Square) – Legislation that goes after price gougers after a natural disaster in Illinois is itself being called a disaster.

The measure, Senate Bill 1932, would prohibit unjustified price increases on essential goods and services in disaster areas for 45 days after the governor or U.S. president declares a state of emergency.

“Tornadoes are common in Illinois, so imagine one destroys your home and you go to the store to purchase diapers only to find the price has tripled,” said the bill’s sponsor, state Sen. Suzy Glowiak Hilton, D-Western Springs. “For some, that’s just not feasible.”

The bill says a price increase of 20% or more during a disaster is considered unconscionably high, unless it can be attributed to increased costs on behalf of the seller. Items covered by the bill include building materials, food, medical and emergency supplies, and repair, storage and transportation services.

State Sen. Jason Plummer, R-Edwardsville, has a problem with that price increase threshold.

- Advertisement -

“If you look at any business model, 20% swings in insurance, 20% swings in commodity products, 20% swings in all kinds of things happen regularly,” said Plummer.

While 39 states have regulations against price gouging during disasters, Illinois limits its protections to excessive costs of petroleum products.

Plummer said sometimes things sound good in theory and they cause disasters in practice, and this piece of legislation is exactly that.

“You’re going to turn the attorney general’s office and who knows who else loose on small and medium businesses around the state,” said Plummer. “It’s well intended but this is going to be a disaster for the people trying to provide goods and services in all our districts, and it’s going to create a litigation nightmare for them.”

The bill passed the Senate and is now headed to the House for consideration.

spot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Seattle police eye GPS tech as alternative to high-speed pursuits

(The Center Square) – The Seattle Police Department is...

Medical debt relief bill clears House

(The Center Square) - For many Pennsylvanians, medical debt...

Report: Louisiana still battling fentanyl crisis

(The Center Square) — Louisiana continues to face one...

WATCH: Illinois In Focus Daily | Wednesday May 14th, 2025

(The Center Square) – In today's edition of Illinois...

ICE-D.C. sweep: 189 arrests, notices to 187 local businesses

(The Center Square) – U.S. Immigration and Customs Enforcement-District...

Border Patrol applications highest in U.S. history under Trump

Since President Donald Trump took office, U.S. Border Patrol...

More like this
Related

From Boulder to the Big Leagues: How Shedeur Sanders’ Draft Journey Mirrors Eli Manning’s Past

Why Shedeur Sanders Became a College Football and Video...

Seattle police eye GPS tech as alternative to high-speed pursuits

(The Center Square) – The Seattle Police Department is...

Medical debt relief bill clears House

(The Center Square) - For many Pennsylvanians, medical debt...

Report: Louisiana still battling fentanyl crisis

(The Center Square) — Louisiana continues to face one...