Guest opinion: Idaho Attorney General is walking a fine line toward regulating profits

Senate Bill 1041 is being debated in the Idaho Legislature: a bill created after an investigation by Idaho’s Attorney General into the price of gasoline last year. In Idaho, and many states around the nation, drivers saw some of the lowest prices in more than a decade – with people spending more time at home because of the pandemic, the demand was low, and oil was abundant.

A recent investigation targeted three local gas sellers claiming their profit margins were too high, despite Idaho having some of the lowest in the country.

While the Attorney General’s Office tried to change the narrative, what it has not considered is the extra cost of being deemed an essential business.

Idaho’s gas stations and convenience stores provided round-the-clock readiness, ensuring essentials were available in a safe and sanitary environment. They purchased Plexiglas, 24-7 sanitation, masks, gloves and overtime pay for shifts needing to be covered for those sick from COVID-19.

Ultimately, the three businesses gave in and agreed to a credit for consumers to avoid a costly lawsuit.

Excessive pricing or price gouging laws are important consumer protections. I admire our state’s legal team for taking this seriously and being diligent, especially during a period of emergency when essentials like toilet paper and water were scarce, but fuel was not. It was plentiful, and prices in some places were lower than $1.

The current law, written by the Attorney General in 2002, only refers to prices. That’s how it should be. By mixing in margins, the Attorney General’s Office is creating confusion and has come dangerously close to regulating profits.

Could you imagine living in a state where competition is discouraged and businesses are forced to close because pricing is set by an outsider, without looking at the costs on the other end? We would all be affected, especially those in Idaho’s rural communities, creating even fewer options for consumers.

That is why it is so important for Idaho state representatives to support Senate Bill 1041, and why it was so important that state senators gave it unanimous support.

This legislation maintains all the consumer protections in current statute, while clarifying the language so honest businesses aren’t penalized for operating ethically, just because their margins are higher than the Attorney General likes. This legislation mitigates government overreach and allows all businesses, not just gas stations, to set reasonable prices with a reasonable profit.

Senate Bill 1041 makes it clear that price gouging is defined as exorbitant or excessive increased prices charged to the consumer. It compares the increased price paid by the consumer before and after the emergency declaration. It considers additional costs of doing business during an emergency and increased prices due to loss of sales. This legislation only strengthens Idaho by making common sense clarifications.

Tell your legislators to support small businesses and consumers by supporting Senate Bill 1041.