What is the New York Milk Price Gouging Law?
A. The Milk Price Gouging Law, Section 396-rr of the General Business Law, was enacted to protect consumers from excessively high retail prices. Each month a threshold price is calculated and announced for fluid milk for two broad regions of the state. Retail stores that price above the threshold price may be subject to legal action by the Attorney General if they cannot establish that the prices they charge are justified by actual costs. The threshold price is a price that is 200 percent of the farm price for Class I milk. Monitoring retailers’ compliance with the law has been primarily carried out through milk price survey data.
