KOROR (Palau Horizon) — President Tommy Remengesau has signed legislation that will regulate the price increase of consumer goods and other commodities during “abnormal” market disruptions.
Remengesau also requested the leadership of the Olbiil Era Kelulau, the nation’s legislature, to add more teeth to the law to further protect the interest of the consumers.
“Although I have signed the legislation, it appears that as a practical matter, enforcement may be difficult for a variety of reasons concerning the interpretation of market disruptions and business justifications. The administration, however, will work diligently within the parameters of the legislation to protect the republic’s consumers,” Remengesau said in his transmittal letter to the OEK.
He recommended amending existing provisions in the Palau National Code which he said already regulates unfair business practices and protects consumers.
“Rather than accomplish these objectives through a separate act, you may wish to consider legislation modifying (the law) and authorizing the executive branch to freeze prices for essential items (during) certain specified events,” Remengesau said.
Should the OEK find this suggestion suitable, Remengesau said the administration will closely work with lawmakers regarding the matter.
Introduced by House Speaker Mario Gulibert, the Anti-Price Gouging Act aims to prevent the sudden increase in prices during periods of disruption caused by strikes, tropical storms, power failures or severe shortages.
According to the new law, the court can determine whether prices were increased excessively.
In the event that there is a violation, the Attorney General’s Office may apply for an order to restrain businesses from raising prices.
Violators face a civil penalty not exceeding $10,000 and will be required to pay restitution to aggrieved consumers.
Any person may bring a suit against any firm found to be excessively charging consumers.
