ALBANY, N.Y. -- The chairman of the state Senate's health
committee called Friday for a review of New York's
price-gouging law because of doubts the statute can be used
against flu vaccine price-gougers.
The law was designed to prevent people from capitalizing on
an emergency by charging exorbitant prices for the
necessities of life, such as drinking water, food or fuel.
Emergencies have been understood to mean natural disasters
like blizzards or times of extreme upheaval such as the
Sept. 11 terrorist attack, said Darren Dopp, spokesman for
Attorney General Eliot Spitzer.
Sen. Kemp Hannon, a Long Island
Republican, said "there is a question as to whether the
current statute is sufficient to cover" vaccine price
gouging.
"It seems to be written to deal with the sale of gasoline or
something like that," said Hannon. "Is a patient a
consumer?"
But Hannon, who announced he would hold public hearings on
the potential for price gouging of vaccinations in New York,
said he has no doubt that the current shortage of vaccine
doses is a public health threat akin to those encountered
during disasters.
"When you have the sudden loss of 50 percent of the nation's
vaccine supply, I would say that comes as close to an
emergency as you're going to get," Hannon said. "When we
have done everything as a government to encourage people to
get vaccinated and now many cannot, that's an emergency."
The Republican legislator also said he wants to review state
law to see if the current procedures, where the state
attorney general gets the authority to pursue price-gouging
cases after they are referred by local authorities, is the
best vehicle for going after such violators.
Hannon said he had heard of at least two instances where
Long Island hospitals reported being offered vaccines for
sale at what appeared to be inflated prices.
He announced the Senate hearings at the public library in
Farmingdale where a flu shot clinic planned for 800 people
Friday had to be canceled because of the vaccine shortage.
Meanwhile Friday, the state Consumer Protection Board said
it had set up a toll-free number (1-800-697-1220) for New
Yorkers to report suspected cases of price gouging and other
irregularities concerning the distribution of vaccine.
No calls had been received on the line as of Friday
afternoon, Consumer Protection Board spokesman Jon Sorensen
said. People could also report complaints on the agency's
Web site at www.nysconsumer.gov, Sorensen said.
It would be "unconscionable" to inflate the price of vaccine
to take advantage of a shortage, said state Health
Department spokesman Rob Kenny. The department intends to
pursue cases of apparent price gouging "to the fullest
extent of the law," according to Kenny, who said he was not
familiar with the questions raised about whether the gouging
law can be applied to the sale of flu vaccine.
The health department reiterated that hospitals that fail to
give flu shots to the most at-risk groups will be
investigated and may be fined and doctors who do not follow
federal regulations for giving flu shots may be investigated
by the State Office of Professional Medical Conduct.
The shortage of vaccine was caused when the British
government suspended a manufacturer's operating license and
prohibited it from shipping tens of millions of doses that
had been ordered for this flu season by health care
providers in the United States.