§ 75-38. Prohibit excessive pricing during states of disaster, states of emergency, or abnormal market disruptions.
§ 75‑38. Prohibitexcessive pricing during states of disaster, states of emergency, or abnormalmarket disruptions.
(a) Upon a triggeringevent, it is prohibited and shall be a violation of G.S. 75‑1.1 for anyperson to sell or rent or offer to sell or rent any goods or services which areconsumed or used as a direct result of an emergency or which are consumed orused to preserve, protect, or sustain life, health, safety, or economic well‑beingof persons or their property with the knowledge and intent to charge a pricethat is unreasonably excessive under the circumstances. This prohibition shallapply to all parties in the chain of distribution, including, but not limitedto, a manufacturer, supplier, wholesaler, distributor, or retail seller ofgoods or services. This prohibition shall apply in the area where the state ofdisaster or emergency has been declared or the abnormal market disruption hasbeen found.
In determining whether a priceis unreasonably excessive, it shall be considered whether:
(1) The price charged bythe seller is attributable to additional costs imposed by the seller's supplieror other costs of providing the good or service during the triggering event.
(2) The price charged bythe seller exceeds the seller's average price in the preceding 60 days beforethe triggering event. If the seller did not sell or rent or offer to sell orrent the goods or service in question prior to the time of the triggeringevent, the price at which the goods or service was generally available in the tradearea shall be used as a factor in determining if the seller is charging anunreasonably excessive price.
(3) The price charged bythe seller is attributable to fluctuations in applicable commodity markets;fluctuations in applicable regional, national, or international market trends;or to reasonable expenses and charges for attendant business risk incurred inprocuring or selling the goods or services.
(b) In the event theAttorney General investigates a complaint for a violation of this section anddetermines that the seller has not violated the provisions of this section andif the seller so requests, the Attorney General shall promptly issue a signedstatement indicating that the Attorney General has not found a violation ofthis section.
(c) For the purposes ofthis section, the end of a triggering event is the earlier of 45 days after thetriggering event occurs or the expiration or termination of the triggeringevent unless the prohibition is specifically extended by the Governor.
(d) A "triggering event"means the declaration of a state of emergency pursuant to G.S. 166A‑8 orArticle 36A of Chapter 14 of the General Statutes, the proclamation of a stateof disaster pursuant to G.S. 166A‑6, or a finding of abnormal marketdisruption pursuant to G.S. 75‑38(e).
(e) An "abnormalmarket disruption" means a significant disruption, whether actual orimminent, to the production, distribution, or sale of goods and services inNorth Carolina, which are consumed or used as a direct result of an emergencyor used to preserve, protect, or sustain life, health, safety, or economic well‑beingof a person or his or her property. A significant disruption may result from anatural disaster, weather, acts of nature, strike, power or energy failures orshortages, civil disorder, war, terrorist attack, national or local emergency,or other extraordinary adverse circumstances. A significant market disruptioncan be found only if a declaration of a state of emergency, state of disaster,or similar declaration is made by the President of the United States or anissuance of Code Red/Severe Risk of Attack in the Homeland Security AdvisorySystem is made by the Department of Homeland Security, whether or not suchdeclaration or issuance applies to North Carolina.
(f) The existence ofan abnormal market disruption shall be found and declared by the Governorpursuant to the definition in subsection (e) of this section. The duration ofan abnormal market disruption shall be 45 days from the triggering event, butmay be renewed by the Governor if the Governor finds and declares thedisruption continues to affect the economic well‑being of NorthCarolinians beyond the initial 45‑day period. (2003‑412, s. 1; 2006‑245,s. 1; 2006‑259, s. 41.)