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How To Protect Consumers From Price Gouging . . .

If the milk price gouging law isn’t working, do the next best thing — raise the price ceiling. Problem solved:

The state-controlled price for a gallon of milk in New York City will rise to $4.37 next Tuesday, state regulators said, in the wake of rising fuel costs and diminishing corn supplies.

State agriculture authorities set the loose ceiling of milk prices, based on the cost of farm production. Individual stores can top the milk-price threshold — now at $3.93 a gallon — if they can show financial hardships, such as extraordinarily high wholesale, rent or delivery costs.

So in practice, the state-set threshold generally applies to the large supermarkets, while neighborhood bodegas tend to have higher prices, officials said.

Posted: June 25th, 2008 | Filed under: Consumer Issues
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