Law would protect consumers in crises.
Legislators should overturn Gov. Mark Sanford's veto of
legislation that would give the attorney general greater authority
to investigate price gouging.
The legislation would allow the attorney general to investigate
and prosecute price gougers by issuing a "notice of abnormal
disruption of the market" when a state of emergency declared by the
president creates a dramatic change in the market price for
commodities. In pushing for the legislation, Attorney General Henry
McMaster also stressed the need to preserve the free market.
Sanford's main objection to the law is that it would have given
the attorney general too much power. In his veto message Sanford
wrote, "having both the emergency declaration and prosecutorial
decision made by the same person is fraught with the potential for
abuse."
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Had this process been in place in the wake of Hurricane Katrina,
McMaster would have been able to more easily investigate high
gasoline prices. Seven gas station owners earlier this year reached
a civil settlement with the state after charging an average of $4.59
a gallon for gasoline after the storms.
Sanford's veto assumes misuse by the attorney general. It also
ignores how difficult this law would be to abuse: Circumstances that
create an abnormal market disruption would, by their definition, be
plainly evident and difficult to fabricate. This bill would rob the
governor of no authority and would put businesses in no jeopardy.
Most importantly, Sanford ignored how this bill would further
protect consumers from vultures who might capitalize on miserable
circumstances. |