75-38. Prohibit excessive pricing during states of disaster, states of emergency, or abnormal market disruptions.
(a) Upon a triggering event, it is prohibited and shall be a violation of G.S. 75-1.1 for any person to sell or rent or offer to sell or rent any goods or services which are consumed or used as a direct result of an emergency or which are consumed or used to preserve, protect, or sustain life, health, safety, or economic well-being of persons or their property with the knowledge and intent to charge a price that is unreasonably excessive under the circumstances. This prohibition shall apply to all parties in the chain of distribution, including, but not limited to, a manufacturer, supplier, wholesaler, distributor, or retail seller of goods or services. This prohibition shall apply in the area where the state of disaster or emergency has been declared or the abnormal market disruption has been found.
In determining whether a price is unreasonably excessive, it shall be considered whether:
(1) The price charged by the seller is attributable to additional costs imposed by the seller's supplier or other costs of providing the good or service during the triggering event.
(2) The price charged by the seller exceeds the seller's average price in the preceding 60 days before the triggering event. If the seller did not sell or rent or offer to sell or rent the goods or service in question prior to the time of the triggering event, the price at which the goods or service was generally available in the trade area shall be used as a factor in determining if the seller is charging an unreasonably excessive price.
(3) The price charged by the 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 in procuring or selling the goods or services.
(b) In the event the Attorney General investigates a complaint for a violation of this section and determines that the seller has not violated the provisions of this section and if the seller so requests, the Attorney General shall promptly issue a signed statement indicating that the Attorney General has not found a violation of this section.
(c) For the purposes of this section, the end of a triggering event is the earlier of 45 days after the triggering event occurs or the expiration or termination of the triggering event unless the prohibition is specifically extended by the Governor.
(d) A "triggering event" means the declaration of a state of emergency pursuant to Article 1A of Chapter 166A of the General Statutes or a finding of abnormal market disruption pursuant to G.S. 75-38(e).
(e) An "abnormal market disruption" means a significant disruption, whether actual or imminent, to the production, distribution, or sale of goods and services in North Carolina, which are consumed or used as a direct result of an emergency or used to preserve, protect, or sustain life, health, safety, or economic well-being of a person or his or her property. A significant disruption may result from a natural disaster, weather, acts of nature, strike, power or energy failures or shortages, civil disorder, war, terrorist attack, national or local emergency, or other extraordinary adverse circumstances. A significant market disruption can 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 an issuance of Code Red/Severe Risk of Attack in the Homeland Security Advisory System is made by the Department of Homeland Security, whether or not such declaration or issuance applies to North Carolina.
(f) The existence of an abnormal market disruption shall be found and declared by the Governor pursuant to the definition in subsection (e) of this section. The duration of an abnormal market disruption shall be 45 days from the triggering event, but may be renewed by the Governor if the Governor finds and declares the disruption continues to affect the economic well-being of North Carolinians beyond the initial 45-day period. (2003-412, s. 1; 2006-245, s. 1; 2006-259, s. 41; 2012-12, s. 2(o).)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 75 - Monopolies, Trusts and Consumer Protection
Article 1 - General Provisions.
§ 75-1 - Combinations in restraint of trade illegal.
§ 75-1.1 - Methods of competition, acts and practices regulated; legislative policy.
§ 75-2 - Any restraint in violation of common law included.
§ 75-2.1 - Monopolizing and attempting to monopolize prohibited.
§ 75-4 - Contracts to be in writing.
§ 75-8 - Continuous violations separate offenses.
§ 75-9 - Duty of Attorney General to investigate.
§ 75-10 - Power to compel examination.
§ 75-11 - Person examined exempt from prosecution.
§ 75-12 - Refusal to furnish information; false swearing.
§ 75-13 - Criminal prosecution; district attorneys to assist; expenses.
§ 75-14 - Action to obtain mandatory order.
§ 75-15 - Actions prosecuted by Attorney General.
§ 75-15.1 - Restoration of property and cancellation of contract.
§ 75-16 - Civil action by person injured; treble damages.
§ 75-16.2 - Limitation of actions.
§ 75-17 - Lender may not require borrower to deal with particular insurer.
§ 75-18 - Lender may require nondiscriminatory approval of insurer.
§ 75-19 - Violators subject to fine and injunction.
§ 75-20 - Unsolicited checks to secure loans.
§ 75-27 - Unsolicited merchandise.
§ 75-28 - Unauthorized disclosure of tax information; violation a Class 1 misdemeanor.
§ 75-29 - Unfair and deceptive trade names; use of term "wholesale" in advertising, etc.
§ 75-31 - Work-at-home solicitations.
§ 75-32 - Representation of winning a prize.
§ 75-33 - Representation of eligibility to win a prize.
§ 75-34 - Representation of being specially selected.
§ 75-35 - Simulation of checks and invoices.
§ 75-37 - Declaration of State public policy.
§ 75-39 - Conditioning services on electric service prohibited.
§ 75-40 - Deadline for mailing consumer rebates.
§ 75-41 - Contracts with automatic renewal clauses.
§ 75-43 - Solicitation of a fee for copy of recorded documents.