New York lawmakers are considering bills meant to crack down on COVID-19 pandemic-related price gouging and fraud.

Two bills on Tuesday cleared the state Assembly's Consumer Affairs and Protection Committee that would boost penalties for fraud and include medications that are facing supply shortages on a list of goods that cannot be sold at high prices under New York's anti-price gouging statute. 

“No New Yorker should have to deal with fraud and deception — especially during the most vulnerable times,” said Assemblymember Nily Rozic, the chair of the Consumer Affairs and Protection Committee. “This legislation would ensure that penalties against bad actors are a sufficient deterrent and will go a long way to protect consumers during this pandemic and beyond.” 

Federal officials have estimated New York residents have lost $22 million in combined COVID-19-related fraud. At the same time, a shortage of medical equipment needed for cancer treatment, infections and other health concerns has forced some hospitals to rely on the so-called "gray market" in which prices can be inflated. 

“When our state first faced the uncertainty of the pandemic, price gougers preyed on the fear of shocked consumers,” said Assemblymember Karines Reyes. “Essential items like medicine must be secure against greedy and exploitative businesses that seek to take advantage of needy customers and a shortage. A5860A would protect New Yorkers against predatory actions of the drug industry looking to turn a profit at the expense of those with the most need.”