logo
Industries line up to tear down proposal to rein in price-fixing

Industries line up to tear down proposal to rein in price-fixing

Yahoo07-03-2025

"This bill does not cap in any kind of way how much someone can charge for something as long as they aren't knowingly, fraudulently or deceptively engaging in conduct" said the bill's sponsor, Democratic Attorney General Aaron Ford.
Democratic Attorney General Aaron Ford this week said his proposed legislation to crack down on 'knowingly deceptive' price fixing would bolster consumer protections and that opposition from industry groups are relying on 'a bit of hyperbole' to attack it.
'If you're not being deceptive, if you're not being fraudulent, this bill would not apply to you,' Ford said. 'If you are using deceptive and fraudulent means to manipulate the price of necessities beyond those basic forces of supply and demand, this bill speaks directly to your activities.'
Assembly Bill 44, heard Wednesday at the Assembly Committee on Commerce and Labor, expands the state's existing Unfair Trade Practice Act to include knowingly deceptive price fixing of essential goods and services.
The bill defines essential goods as those 'needed on a daily or recurring basis for the livelihood of a person,' including 'food, medicine and shelter.'
An amendment proposed prior to the hearing tweaked the definition to include 'food purchased for off-premises consumption, clothing and footwear, gasoline and other energy goods, pharmaceutical and other medical products, housing, household utilities, ground transportation, telecommunication services, and internet access.'
Ford told state lawmakers he was working on an additional amendment but didn't offer details of what it would include.
He said the efforts to crack down on price fixing came from concerns about the increased cost of housing.
Landlords and property owners have come under fire in recent years for using rent-fixing software to artificially raise the price of rents.
Real estate software companies, like RealPage, have been sued by several state attorneys general and the federal government in the last year. RealPage has denied wrongdoing in these cases. Nevada has not taken action against RealPage.
'We learned of rental prices being increased by virtue of some unfair and illegal price fixing tactics,' Ford said. 'We learned about that through not only complaints from our constituents but also from other attorneys general who are prosecuting agencies and entities that are engaging in that in their practice.'
The cost of living, the state's 'consistently high unemployment rate' and the potential of cuts to the federal social safety net programs such as Medicaid being considered by congressional Republicans are putting 'both the health and financial livelihoods of so many Nevadans at risk,' Ford said.
During times of financial stress, he added, it's easy for people to be exploited through deceptive practices including price fixing.
While the state does have a mechanism to go after some industries that engage in price fixing under the Nevada Unfair Trade Practice Act, he said the office was seeking more specific language to give them additional tools.
'This bill would fill current holes in statutes that have proven insufficient to stop these practices from occurring,' Ford said.
Multiple times during the hearing, Ford reiterated the bill wouldn't apply to businesses that have to increase prices because of inflation, supply chain disruptions or operational costs.
Still, many concerns around the bill stemmed from how the legislation would affect small businesses.
Republican Assemblymember Melissa Hardy, a former small business owner, questioned how the bill would affect businesses that have to raise prices 'because our rent went way up, or our products increased substantially.'
Ford said the scenario described was a basic instance of supply and demand.
'The threshold question for this bill is whether there has been knowingly fraudulent activity,' he said.
Ford used the example of a small business owner raising prices because the commercial space they occupy raised the rent. If the property owner colluded with other landlords or price-fixing algorithms to raise the rent for the small business owner, Ford said, the landlord 'might fall within the bill' but 'raising your prices because of your rent increase would not.'
The Vegas Chamber, Retail Association of Nevada, T-Mobile, AT&T, Nevada Realtors and the Nevada State Apartment Association were among the many industry groups opposed to the bill.
They labeled the legislation as overly broad, 'government price control' and government 'overreach.' One went as far as saying efforts to prevent deceptive price fixing would 'impose rent control.'
'The manipulation of price prevention, while it mentions fraudulent or deceptive conduct, will make normal, everyday market activities legally suspect,' said Miranda Hoover, a lobbyist with the Energy & Convenience Association of Nevada. The bill would mean 'raising prices for any reason could bring legal action and result in liability.'
Ford called their statements hyperbolic.
'We are talking about engaging in knowingly and deceptive conduct,' he said. 'That's the threshold. We don't get to the question about how much the price has increased … This bill does not cap in any kind of way how much someone can charge for something as long as they aren't knowingly, fraudulently or deceptively engaging in conduct. You can charge what you want to charge.'
He reminded lawmakers that some of the same groups against his bill also opposed efforts to restrict price gouging during a state of emergency.
AB 44 also includes price fixing by utilities, but the legislation exempts utilities that are already regulated by the Public Utilities Commission of Nevada. Several Democratic lawmakers questioned the strength of the provision and whether all the state's utilities would essentially be exempt under this provision.
'I can't think of any that are not already regulated,' Democratic Assemblymember Elaine Marzola said.
Ford said telecommunications providers, like AT&T and T-Mobile, were deregulated in the state. It is 'not beyond the pale of imagination that an entity that right now is regulated may no longer be regulated,' he added.
The Nevada Coalition of Legal Service Providers was the lone organization to testify in support of the bill.
'This is about scammers trying to fleece Nevadans,' said Jonathan Norman, the coalition's advocacy, outreach and policy director. 'When I think of the consumers we see, the people coming into our offices, they almost uniformly, no matter the issue, had economic harm happen to them. We appreciate any bill that stands up for those consumers'
The committee took no action on the bill.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Iowa governor rejects GOP bill to increase regulations of Summit's carbon dioxide pipeline
Iowa governor rejects GOP bill to increase regulations of Summit's carbon dioxide pipeline

San Francisco Chronicle​

time36 minutes ago

  • San Francisco Chronicle​

Iowa governor rejects GOP bill to increase regulations of Summit's carbon dioxide pipeline

DES MOINES, Iowa (AP) — Iowa Gov. Kim Reynolds on Wednesday rejected a bill that could have introduced more complications for a massive carbon-capture pipeline project routed across several Midwestern states, issuing a rare veto in the Republican-controlled statehouse. The legislation was designed by Iowa House Republicans to increase regulations of Summit Carbon Solutions' estimated $8.9 billion, 2,500-mile (4,023-kilometer) project that cuts across Iowa and already has an approved permit in the state. But the bill provoked loud opposition from members of Iowa's powerful ethanol industry, which argued the project is essential for Iowa's agricultural dominance, for farmers and for construction jobs. And it exposed a rift within the party over how to protect property rights. 'While I shared the bill's goal of protecting landowners, good policy should draw clear, careful lines. This bill doesn't,' said Reynolds, a Republican, in the explanation of her veto. 'It combines valid concerns with vague legal standards and sweeping mandates that reach far beyond their intended targets.' Despite her veto, Reynolds said she was 'committed to working with the legislature to strengthen landowner protections, modernize permitting, and respect private property.' Iowa state Rep. Bobby Kaufmann, a Republican who supported the bill in the House, said Wednesday that her commitment is too little, too late. 'If she was willing to work with us on this, where in the world has she been the last three years?' Kaufmann said. 'She is clearly not siding with the constitutional rights of landowners but rather she's siding with special interests.' Summit has said it has invested nearly $175 million to enter into voluntary agreements with landowners in Iowa and more than $1 billion on the project overall. In a statement, Summit thanked the governor for a thoughtful review of the bill and said their goal is to proceed with voluntary agreements with landowners. Even with the relief from Reynolds' veto, Summit will likely have to readjust plans after South Dakota's governor signed a ban on the use of eminent domain — the government seizure of private property with compensation — to acquire land for carbon dioxide pipelines. Summit's permit application was also rejected in South Dakota. The project has permit approvals in Iowa, Minnesota and North Dakota but faces various court challenges. The Iowa bill would have prohibited the renewal of permits for a carbon dioxide pipeline, limited the use of such a pipeline to 25 years and significantly increased the insurance coverage requirements for the pipeline company. Those provisions would likely have made it less financially feasible for a company to build a carbon dioxide pipeline. 'We look forward to continued discussions with state leaders as we advance this important project,' Summit said Wednesday. 'At a time when farmers are facing increasing pressures, this project opens the door to new markets and helps strengthen America's energy dominance for the long term.' Rift in Republican-controlled statehouse Republican House Speaker Pat Grassley said after Reynolds' veto that he would pursue a special session to vote on an override, saying in a statement that the veto 'is a major setback for Iowa.' The Iowa Constitution states that a request for special session from two-thirds of both chambers, or the governor, can bring lawmakers back to Des Moines. Two-thirds of both chambers would need to vote for an override for the bill to become law without the governor's approval. 'We will not stop fighting and stand firm on our commitment until landowners' in Iowa are protected against Eminent Domain for private gain,' Grassley said. Senate Majority Leader Jack Whitver suggested that would be unlikely in his chamber. Thirteen Republican senators had joined with 14 Democrats in voting in favor of the bill, but 21 Republicans and one Democrat voted against it. 'Based on the votes on that bill in the Iowa Senate, a significant majority of our caucus supports a better policy to protect landowner rights. I expect that majority of our caucus would not be interested in any attempt to override her veto,' he said. As the legislative session wound down, a dozen Republican senators insisted their leaders bring the House-approved bill to the floor for a vote after several years of inaction. The stalemate ended in a long and divisive debate among the Iowa Senate's Republican supermajority, with senators openly criticizing one another and exposing the closed-door discussions that got them there. Summit's project and its critics The Summit pipeline was proposed to carry carbon emissions from ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to be stored underground permanently in North Dakota. By lowering carbon emissions from the plants, the pipeline would lower their carbon intensity scores and make them more competitive in the renewable fuels market. The project would also allow ethanol producers and Summit to tap into federal tax credits. The pipeline's many critics have for years begged lawmakers for action. They accuse Summit of stepping on their property rights and downplaying the safety risks of building the pipeline alongside family homes, near schools and across ranches. Lee Enterprises and The Associated Press reviewed hundreds of cases that reveal the great legal lengths the company went to to get the project built. In South Dakota, in particular, a slew of eminent domain legal actions to obtain land sparked a groundswell of opposition that was closely watched by lawmakers in Iowa as well. A group of landowners released a statement Wednesday calling the veto a slap in the face. 'Big money, greed & self interest won the day,' said Jan Norris, a landowner in southwest Iowa whose neighbor is in the pipeline's route. 'Our property rights are for sale to the highest bidder.'

US regulators push through last-minute delay to new private fund reporting rules
US regulators push through last-minute delay to new private fund reporting rules

Yahoo

time37 minutes ago

  • Yahoo

US regulators push through last-minute delay to new private fund reporting rules

By Chris Prentice NEW YORK (Reuters) -U.S. regulators scrambled on Wednesday to extend a deadline for new data reporting requirements for investment advisers to private funds, just one day before they were due to take effect. The rules, adopted by two U.S. markets regulators in February 2024, will require advisers to disclose more information to regulators in a bid to boost the government's ability to spot risks from private markets that have swelled in size in recent years. The U.S. Securities and Exchange Commission extended the deadline for compliance to later this year in a 3-1 vote on Wednesday, less than 24 hours before firms had to comply. The Commodity Futures Trading Commission also voted in favor of an extension, marking the second time the regulators decided to push back the deadline after previously postponing it in January. "Additional time is required for dialogue with filers, review of the reasonableness of the data demands, and review of the actual utility of the information collected," SEC Chairman Paul Atkins said during Wednesday's open meeting. Private funds have pressed the SEC to review this rule, among others, and have warned the new requirements are unnecessary and costly. The firms now have until October 1, 2025 to comply. The new data, which includes disclosure of events pointing to significant stress within 72 hours, would be accessible to the Financial Stability Oversight Council, which gathers top financial regulators across the U.S. government to monitor systemic risks. Regulators have cautioned for years that growing private markets could pose increasing risks, particularly as they are more opaque and less vigorously regulated than traditional markets. Federal agencies have begun a push to loosen regulations as part of Republican President Donald Trump's agenda since he took office in late January. "The SEC and other regulators, including FSOC, depend on these detailed data to better comprehend when the private markets may be experiencing turbulence that could affect our entire financial system, because these entities generally operate outside our regulatory purview," said Caroline Crenshaw, the lone Democratic SEC commissioner.

Bill allowing anyone 18 or older to conceal carry passes NC House, headed to governor
Bill allowing anyone 18 or older to conceal carry passes NC House, headed to governor

Yahoo

time41 minutes ago

  • Yahoo

Bill allowing anyone 18 or older to conceal carry passes NC House, headed to governor

RALEIGH, N.C. (WNCN) — Despite two Republican lawmakers siding with Democrats in opposition, a bill allowing people as young as 18 to carry a gun without a permit in the state, is headed to the Governor's office. Republican sponsors of the bill say it only enshrines the right to carry a weapon to law-abiding citizens. Rep. Jay Adams (R-Catawba) said in defense of the bill, ' States have done this…we're close to 50% of the country…this is really not going to affect criminal behavior…this is going to benefit law abiding citizens.' Democrats opposed the bill, saying it'll only lead to more gun violence and put guns into the hands of teenagers who aren't old enough to understand the true dangers of guns. 'Studies have shown that permit-less concealed carry increases violence and death,' Rep. Phil Rubin (D-Wake) said. The final vote came after a second reading in which 54 voted in favor and 48 voted against. The bill now heads to Gov. Josh Stein's desk, where he can sign it into law or veto the bill. If Stein vetoes SB50, House Republicans would need every single Republican and one Democrat to vote to override that veto. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store