State Rep. Mike Kowall wants the state to impose stricter penalties on those who price gouge in a time of tragedy.
Kowall, a White Lake Republican and assistant majority whip, unveiled legislation Thursday that would modify Michigan’s Consumer Protection Act to make profiteering a felony crime punishable by five years in prison and a $20,000 fine. The act currently includes a $25,000 fine, but it does not include a criminal charge.
“During these times of uncertainty, we must set aside individual interests to support and assist efforts toward our common goals,” Kowall said in a statement. “If the sudden, uncalled-for jump of gasoline prices in the Midwest just hours following the attacks is any measure of people’s concern for others, we have a long way to go in forging a united front against any adversaries.”
The bill will cover necessities such as food, water, various fuels, batteries and other goods crucial to survival.
Kowall said he hopes the legislation is expedited through the state House.
When gasoline prices rose after the attacks, Michigan Attorney General Jennifer Granholm’s office warned that gougers would be subjected to fines.
“We are always supportive of efforts to support consumers, especially in instances like this where people are trying to profit from a tragedy,” said Genna Gent, a spokeswoman for Granholm.
Gent said other states such as Louisiana and Texas have statutes that prevent profiteering in times of disaster, but Michigan doesn’t have any similar legislation.
State Rep. Gretchen Whitmer, D-East Lansing, said Democrats are calling on Granholm to investigate those who have elevated prices.
“We need to take some action to punish people that try to make money off of a tragedy like this,” said Whitmer, who said she had not seen Kowall’s legislation. “I’ve gotten a number of phone calls from my constituents asking about gas prices.”
Whitmer said there has been a “knee-jerk reaction” from some vendors in the state since the attack. Gas prices in East Lansing remained under $2 per gallon.
To report gouging, call the governor’s office at (517)373-3400, the lieutenant governor’s office at (517)373-6800 or the Michigan attorney general’s office at (517)373-1140.
