Rhode Island House Bill H7214

Rhode Island 2026 Regular Session

• Introduced: 1/21/26
• Refer: 1/21/26

Caption

Makes it a felony to price gouge prescriptions or pharmaceuticals in time of a shortage.

Impact

If enacted, HB 7214 would directly amend Title 6 of the General Laws concerning commercial regulatory provisions. It introduces a new chapter that not only delineates conditions under which price gouging is deemed unlawful but also imposes significant penalties for violations. Offenders could face felony charges, with potential imprisonment of up to five years and fines reaching $10,000. This creates a clear deterrent against exploitative pricing during health crises, signifying a serious legislative effort to protect consumers from unnecessary financial burdens when access to vital medications is most critical.

Summary

House Bill 7214 proposes a significant shift in the regulatory landscape concerning prescription drug pricing during times of declared market shortages. Introduced by Representatives J. Lombardi and others, the bill aims to prohibit price gouging, which is defined as charging consumers an unreasonably high price for vital drugs during market emergencies. It emphasizes the necessity of such drugs for maintaining public health and responds to the current challenges related to drug shortages, particularly in critical areas such as surgeries and cancer treatment. The bill stipulates that certain practices within the pharmaceutical distribution chain may take unfair advantage of consumers amidst these shortages, thus necessitating legal measures.

Contention

Debates surrounding HB 7214 are likely to focus on the balance between ensuring fair pricing for consumers and the implications for pharmaceutical companies' pricing strategies. While proponents argue that the bill protects vulnerable populations from exploitation during shortages, detractors may contend that strict regulations could inhibit market dynamics and discourage suppliers from taking risks that ensure drug availability. The bill does offer mechanisms for review and reassessment of pricing criteria, which could serve as a platform for ongoing discussions on pharmaceutical pricing practices and market regulation as health crises evolve.