Illinois Compiled Statutes 410 ILCS 725/10 – Price gouging prohibited
Current as of: 2024 | Check for updates
|
Other versions
(a) A manufacturer or wholesale drug distributor shall not engage in price gouging in the sale of an essential off-patent or generic drug that is ultimately sold in Illinois.
It is not a violation of this Act for a wholesale distributor to increase the price of an essential off-patent or generic drug if the price increase is directly attributable to an increase in the wholesale acquisition cost for the essential off-patent or generic drug imposed on the wholesale drug distributor by the manufacturer of the drug.
For the purpose of the enforcement of this Act, the Director of Healthcare and Family Services shall notify the Attorney General of any increase in the price of any essential off-patent or generic drug under the Medical Assistance Program under § V of the Illinois Public Aid Code that amounts to price gouging.
(b) If the Attorney General has reason to believe that a manufacturer or wholesale drug distributor of an essential off-patent or generic drug has violated this Act, then the Attorney General may send a notice to the manufacturer or the wholesale drug distributor requesting a statement:
(1) itemizing the components of the cost of producing
It is not a violation of this Act for a wholesale distributor to increase the price of an essential off-patent or generic drug if the price increase is directly attributable to an increase in the wholesale acquisition cost for the essential off-patent or generic drug imposed on the wholesale drug distributor by the manufacturer of the drug.
Terms Used In Illinois Compiled Statutes 410 ILCS 725/10
- Freedom of Information Act: A federal law that mandates that all the records created and kept by federal agencies in the executive branch of government must be open for public inspection and copying. The only exceptions are those records that fall into one of nine exempted categories listed in the statute. Source: OCC
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
For the purpose of the enforcement of this Act, the Director of Healthcare and Family Services shall notify the Attorney General of any increase in the price of any essential off-patent or generic drug under the Medical Assistance Program under § V of the Illinois Public Aid Code that amounts to price gouging.
(b) If the Attorney General has reason to believe that a manufacturer or wholesale drug distributor of an essential off-patent or generic drug has violated this Act, then the Attorney General may send a notice to the manufacturer or the wholesale drug distributor requesting a statement:
(1) itemizing the components of the cost of producing
|
the essential off-patent or generic drug;
|
(2) identifying the circumstances and timing of an
|
increase in materials or manufacturing costs that caused an increase in the wholesale acquisition cost of the essential off-patent or generic drug within the 5-year period preceding the date of the price increase;
|
(3) identifying the circumstances and timing of any
|
expenditures made by the manufacturer to expand access to the essential off-patent or generic drug and explaining any improvement in public health associated with those expenditures;
|
(4) identifying any communications with competitors
|
of distributors about that drug and any price changes; the request for a statement shall serve as a litigation hold regarding documents and communications about that drug; and
|
(5) providing any other information that the
|
manufacturer or wholesale drug distributor believes to be relevant to a determination of whether a violation of this Act has occurred.
|
Within 45 days after receipt of the request, the manufacturer or wholesale drug distributor shall submit the statement to the Attorney General.
To accomplish the objectives and carry out the duties prescribed in this Act, the Attorney General may issue subpoenas or examine under oath any person to determine whether a manufacturer or wholesale drug distributor has violated this Act.
(c) Upon petition of the Attorney General, a circuit court may issue an order:
(1) compelling a manufacturer or a wholesale drug
To accomplish the objectives and carry out the duties prescribed in this Act, the Attorney General may issue subpoenas or examine under oath any person to determine whether a manufacturer or wholesale drug distributor has violated this Act.
(c) Upon petition of the Attorney General, a circuit court may issue an order:
(1) compelling a manufacturer or a wholesale drug
|
distributor:
|
(A) to provide a statement required under
|
subsection (b); or
|
(B) to produce specific records or other
|
documents requested by the Attorney General that may be relevant to a determination of whether a violation of this Act has occurred;
|
(2) restraining or enjoining a violation of this Act;
(3) restoring to any consumer, including a
(3) restoring to any consumer, including a
|
third-party payor, any money acquired as a result of a price increase that violates this Act;
|
(4) requiring a manufacturer or wholesale drug
|
distributor that has engaged in price gouging in the sale of an essential off-patent or generic drug to make the drug available to participants in the State health plan or Medical Assistance Program under § V of the Illinois Public Aid Code for a period of up to one year at the price at which the drug was made available to participants in Illinois immediately before the violation of this Act;
|
(5) imposing a civil penalty of up to $10,000 per day
|
for each violation of this Act;
|
(6) providing for the Attorney General’s recovery of
|
costs and disbursements incurred in bringing an action against a manufacturer found to be in violation of this Act, including the costs of investigation and reasonable attorney’s fees; or
|
(7) granting any other relief.
In response to any petition brought by the Attorney General under this Section, a manufacturer or wholesale drug distributor who is alleged to have violated this Act may not assert as a defense that the manufacturer or wholesale drug distributor did not directly sell a product to a consumer residing in Illinois.
(d) Any financial information provided by a manufacturer or a wholesale drug distributor to the Attorney General in accordance with this Section may not be disclosed to the public by the Attorney General. The financial information, while in the possession of the Attorney General, shall be exempt from disclosure by the Attorney General under the Freedom of Information Act. Notwithstanding the other provisions of this subsection, if it appears to the Attorney General that a manufacturer or wholesale drug distributor has engaged in or is engaging in any practice declared to be in violation of this Act and that legal proceedings would be in the public interest, then the Attorney General may disclose any financial information provided in accordance with this Section in support of the filing of an action in the circuit court.
In response to any petition brought by the Attorney General under this Section, a manufacturer or wholesale drug distributor who is alleged to have violated this Act may not assert as a defense that the manufacturer or wholesale drug distributor did not directly sell a product to a consumer residing in Illinois.
(d) Any financial information provided by a manufacturer or a wholesale drug distributor to the Attorney General in accordance with this Section may not be disclosed to the public by the Attorney General. The financial information, while in the possession of the Attorney General, shall be exempt from disclosure by the Attorney General under the Freedom of Information Act. Notwithstanding the other provisions of this subsection, if it appears to the Attorney General that a manufacturer or wholesale drug distributor has engaged in or is engaging in any practice declared to be in violation of this Act and that legal proceedings would be in the public interest, then the Attorney General may disclose any financial information provided in accordance with this Section in support of the filing of an action in the circuit court.