Senate advances narrow price-gouging ban for declared emergencies with exemptions for businesses

Senator Arendt presented Senate Bill 52, a narrowly tailored price-gouging statute that would apply only during declared emergencies by the governor or president. Arendt said Utah currently lacks a price-gouging statute and that the bill reflects feedback from retailers and merchants aimed at protecting the public while giving merchants limited flexibility.

Under the bill as described on the floor, the Division of Consumer Protection would have authority to review allegations and request documentation from sellers. The bill includes an exception allowing merchants to increase prices to account for a demonstrable rise in their cost of obtaining goods or providing services in the 30 days before the emergency declaration; the statute would permit customary markup but generally limit excessive increases.

Floor questions probed the bill’s scope and mechanics. Senator Eastman asked about protections for volume-dependent businesses such as gasoline stations; Arendt said the language was drafted to allow consideration of a business’s cost of doing business. Senator Stevens cautioned that price can serve as a rationing tool and warned of potential hoarding effects; he said he had mixed feelings and planned to offer an amendment later.

Supporters stressed the measure’s modesty compared with other states and noted merchant input — including help from Jim Olsen and the Salt Lake Chamber of Commerce — in drafting exemptions to protect businesses that must rely on volume sales. The Senate voted to move SB 52 to the third-reading calendar (recorded tally: 26 yes, 0 nay, 3 absent).

What happens next: Sponsor indicated willingness to consider additional language; senators signaled potential amendments in follow-up session(s).