Gov. Gavin Newsom signed an executive order this weekend aimed at preventing price gouging on COVID-19 at-home test kits, which are in high demand due to the omicron variant surge.
The order generally prohibits sellers from increasing prices on the test kits by more than 10 percent.
State Attorney General Rob Bonta issued a consumer alert following the governor’s signing of the order and encouraged anyone who has been a victim of price-gouging on at-home COVID-19 test kits to file a complaint with his office or contact local law enforcement.
“Californians are doing their part to confront this challenge — whether by caring for loved ones, getting vaccinated, or working on the front lines – and they shouldn’t have to worry about being cheated while dealing with the effects of coronavirus,” Bonta said.
The order signed by Newsom prohibits sale of at-home COVID-19 test kits at a price that exceeds, by more than 10 percent, the price the seller charged for the item on Dec. 1, 2021.
Sellers who haven’t previously sold at-home COVID-19 test kits may not sell them at a price that is greater than 50 percent of what the seller paid for them.
Violation of the order is a misdemeanor punishable by a fine of up to $1,000 or imprisonment for up to six months, or both. Violations would also constitute a violation of the Unfair Competition Law, which is subject to a $2,500 per violation civil penalty.
Price-gouging complaints can be filed at oag.ca.gov/report.
That’s great, but you have to find one first. Another fumble by Biden.
Jacking up the prices for these is pretty reprehensible.
What about gasoline, groceries and insurance.Big deal about test kits who gives a rip you moron Governor.
Old Timer … Agreed!!!!!
My thoughts too. First thing that came to my mind was gas tax gouging, and then overall California legislator tax/fee gouging.
Also Agreed!!!!
.. gouging already going on….. too little too late again Newsom
ROFLMAO
Neat. Now do gasoline and beef.
Hmmm. So if you get caught price gauging, you get penalized and even go to jail. But if you commit any crime you’re free to go. Yep, only in California.
Do ‘woke crimes’ pay? Here’s a new video of Michael Savage discussing why George Soros is backing left wing District Attorneys like our very own Diana Becton:
https://www.youtube.com/watch?v=kqYdRxfATYY
Newsom thinks he’s doing something important, while the biggest price gougers are getting away with it. A doctor visit by phone, cost the same as a doctor visit in person, and this is something we all pay through insurance premiums.
Didn’t Joe just promise free test kits?
I just wish one day Newsom would sign an order that actually provided a solution to a problem; any problem. He purposely avoids doing that so his performance can’t be evaluated.
It’s interesting the penalty for charging an extra $2 for a test kit is more severe than for beating someone up and stealing their wallet.
+1
Oh, so Newsance signed an order, well that oughtta scare the hell outta them bad guys.
When will Newsom prohibit tax gouging at the register and on the paycheck?
Why doesn’t he do that for automobiles. These dealers are goosing the customer with over msrp charges to get a vehicle. Pure bologna. I got a quote on a car lease for work and they wanted $10k over msrp. ???
Toyota and Ford stated their YoY sales were up 10%. Where is the car parts shortage? If you sell more cars than the previous year you must have enough parts to make the cars. Why then is the dealers ripping people off. Everyone hated car dealers before Covid. Wait until this mess is over. New Car dealers are price gouging and newscum does nothing. Oh yeah tackle the $15 test kit.
Those sales numbers are totaled in dollars, not number of units sold. So you answered your own question: they made more money (in part) because they jacked up prices. That’s entirely consistent with supply shortages. In fact, that’s presumably why they could jack up prices: demand was outstripping supply. Or do you think they were just really unselfish until this year…?
They also gained market share compared to GM, for example.
Also, year-over-year means we are compared to 2020, when (unsurprisingly) the economy took a huge dive.
The car price situation is crazy, but the *very worst thing* that could happen is if people like Newsom decide to take action to “solve” it. Price controls create shortages. We would just have more acute shortages than we already do. Wow, wouldn’t that be great.
Led you are incorrect.
Toyota sold over 2.3 million vehicles in North America which as they state is a 10% increase over last year.
https://pressroom.toyota.com/toyota-motor-north-america-reports-u-s-december-year-end-2021-sales/
Yes 2020 was the start of Covid. But by June 2020 auto sales were on fire and have been ever since.
Led you sound like a car dealer trying to defend their shady practices. This type of gouging is exactly the reason why California has such laws. As it is obvious car dealers can’t help themselves but to rip off their customers.
More shortage. Come on. Making up garbage. So what you are saying is if dealers were limited to selling vehicles at msrp or below the demand would increase. The past 30 years when all cars were sold at or less than msrp did that help?
And for reference 2008-2011 we’re challenging sales years for automobiles. 2020 & 2021 in comparison were good to excellent years for auto sales.
Stop the gouging.
I stand corrected on those first numbers.
I am sure car dealers are shady. I am also sure they didn’t just become shady in the last year. As you say, car sales are on fire.
Purely cosmetic at best, actively harmful at worst. These tests are already way overpriced compared to other countries. The problem is supply, dummy! You can’t fix a supply problem with price controls. You might make it worse, though. (Might.)
If we want there to be enough tests, then the whole system that manufactures and distributes them needs to take fast (expensive) action. Should they get that price signal, or not? Or do we think they will invest in that expensive action just because Gavin Newsom encourages them to do so??
You are spot on LED!
There are too many people that do not understand the reason behind supply and demand, and price signaling. The economic theory of “free ice cream” is all they know. Politicians found out a long time a go that “free ice cream” gets more votes than sound economic theory.
The only cure for higher prices…. is higher prices.