To protect consumers from price-gouging of gasoline and other fuels, and for other purposes.

Summary: Federal Price Gouging Prevention Act - (Sec. 2) Makes it unlawful during a period proclaimed by the President as an energy emergency to sell gasoline or any other petroleum distillate at a price that: (1) is unconscionably excessive; or (2) indicates the seller is taking unfair advantage of the circumstances of an emergency to increase prices unreasonably.

Authorizes the President to issue an energy emergency proclamation and to cite the geographic area covered, the gasoline or other petroleum distillate covered, and the time period that it shall be in effect.

Limits such proclamation to a period of up to 30 consecutive days, but authorizes renewals of up to 30 days.

Authorizes a proclamation to include a period of up to one week preceding a reasonably foreseeable emergency.

Sets forth factors to be considered in determining whether a violation of this Act has occurred.

Declares unlawful any false or misleading reporting to a federal agency of price information with actual knowledge, or knowledge fairly implied on the basis of objective circumstances, that such information is false or misleading.

 Exempts from this Act a sale of gasoline or other petroleum distillate transaction on a futures market.

(Sec. 3) Empowers the Federal Trade Commission (FTC) and state attorneys general to enforce this Act.

Subjects any person who violates this Act to specified civil and criminal penalties.

States that the criminal penalty may be imposed only pursuant to a criminal action brought by the Attorney General or other officer of the Department of Justice.

(Sec. 5) Provides that a state, as parens patriae, may bring a civil action in federal district court to enforce the unconscionable pricing prohibition of this Act, or to impose the civil penalties authorized by this Act, whenever the state's attorney general has reason to believe that the interests of state residents have been or are being threatened or adversely affected by a violation of this Act, or a regulation under it, which involves a retail sale.

(Sec. 6) Requires fines and penalties collected under this Act to be deposited in a separate Consumer Relief Trust Fund in the Treasury to provide assistance under the Low Income Home Energy Assistance (LIHEAP) Program administered by the Secretary of Health and Human Services.

(Sec. 7) Declares that nothing in this Act preempts state law.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Price Gouging Prevention 
Act''.

SEC. 2. UNCONSCIONABLE PRICING OF GASOLINE AND OTHER PETROLEUM 
              DISTILLATES DURING EMERGENCIES.

    (a) Unconscionable Pricing.--
            (1) In general.--It shall be unlawful for any person to 
        sell, at wholesale or at retail in an area and during a period 
        of an energy emergency, gasoline or any other petroleum 
        distillate covered by a proclamation issued under paragraph (2) 
        at a price that--
                    (A) is unconscionably excessive; and
                    (B) indicates the seller is taking unfair advantage 
                of the circumstances related to an energy emergency to 
                increase prices unreasonably.
            (2) Energy emergency proclamation.--
                    (A) In general.--The President may issue an energy 
                emergency proclamation for any area within the 
                jurisdiction of the United States, during which the 
                prohibition in paragraph (1) shall apply. The 
                proclamation shall state the geographic area covered, 
                the gasoline or other petroleum distillate covered, and 
                the time period that such proclamation shall be in 
                effect.
                    (B) Duration.--The proclamation--
                            (i) may not apply for a period of more than 
                        30 consecutive days, but may be renewed for 
                        such consecutive periods, each not to exceed 30 
                        days, as the President determines appropriate; 
                        and
                            (ii) may include a period of time not to 
                        exceed 1 week preceding a reasonably 
                        foreseeable emergency.
            (3) Factors considered.--In determining whether a person 
        has violated paragraph (1), there shall be taken into account, 
        among other factors--
                    (A) whether the amount charged by such person for 
                the applicable gasoline or other petroleum distillate 
                at a particular location in an area covered by a 
                proclamation issued under paragraph (2) during the 
                period such proclamation is in effect--
                            (i) grossly exceeds the average price at 
                        which the applicable gasoline or other 
                        petroleum distillate was offered for sale by 
                        that person during the 30 days prior to such 
                        proclamation;
                            (ii) grossly exceeds the price at which the 
                        same or similar gasoline or other petroleum 
                        distillate was readily obtainable in the same 
                        area from other competing sellers during the 
                        same period;
                            (iii) reasonably reflected additional 
                        costs, not within the control of that person, 
                        that were paid, incurred, or reasonably 
                        anticipated by that person, or reflected 
                        additional risks taken by that person to 
                        produce, distribute, obtain, or sell such 
                        product under the circumstances; and
                            (iv) was substantially attributable to 
                        local, regional, national, or international 
                        market conditions; and
                    (B) whether the quantity of gasoline or other 
                petroleum distillate the person produced, distributed, 
                or sold in an area covered by a proclamation issued 
                under paragraph (2) during a 30-day period following 
                the issuance of such proclamation increased over the 
                quantity that that person produced, distributed, or 
                sold during the 30 days prior to such proclamation, 
                taking into account usual seasonal demand variations.
    (b) False Pricing Information.--It shall be unlawful for any person 
to report to a Federal agency information related to the wholesale 
price of gasoline or other petroleum distillates with actual knowledge 
or knowledge fairly implied on the basis of objective circumstances 
that such information is false or misleading.
    (c) Definitions.--As used in this section--
            (1) the term ``wholesale'', with respect to sales of 
        gasoline or other petroleum distillates, means either truckload 
        or smaller sales of gasoline or petroleum distillates where 
        title transfers at a product terminal or a refinery, and dealer 
        tank wagon sales of gasoline or petroleum distillates priced on 
        a delivered basis to retail outlets; and
            (2) the term ``retail'', with respect to sales of gasoline 
        or other petroleum distillates, includes all sales to end users 
        such as motorists as well as all direct sales to other end 
        users such as agriculture, industry, residential, and 
        commercial consumers.
    (d) Construction.--As described in this section, a sale of gasoline 
or other petroleum distillate does not include a transaction on a 
futures market.

SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Enforcement by FTC.--A violation of section 2 shall be treated 
as a violation of a rule defining an unfair or deceptive act or 
practice prescribed under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 
shall enforce this Act in the same manner, by the same means, and with 
the same jurisdiction as though all applicable terms and provisions of 
the Federal Trade Commission Act were incorporated into and made a part 
of this Act. In enforcing section 2(a) of this Act, the Commission 
shall give priority to enforcement actions concerning companies with 
total United States wholesale or retail sales of gasoline and other 
petroleum distillates in excess of $500,000,000 per year.
    (b) Civil Penalties.--
            (1) In general.--Notwithstanding the penalties set forth 
        under the Federal Trade Commission Act, any person who violates 
        this Act with actual knowledge or knowledge fairly implied on 
        the basis of objective circumstances shall be subject to the 
        following penalties:
                    (A) Price gouging; unjust profits.--Any person who 
                violates section 2(a) shall be subject to--
                            (i) a fine of not more than 3 times the 
                        amount of profits gained by such person through 
                        such violation; or
                            (ii) a fine of not more than $3,000,000.
                    (B) False information.--Any person who violates 
                section 2(b) shall be subject to a civil penalty of not 
                more than $1,000,000.
            (2) Method.--The penalties provided by paragraph (1) shall 
        be obtained in the same manner as civil penalties obtained 
        under section 5 of the Federal Trade Commission Act (15 U.S.C. 
        45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) each day of a continuing violation shall be 
                considered a separate violation; and
                    (B) the court shall take into consideration, among 
                other factors, the seriousness of the violation and the 
                efforts of the person committing the violation to 
                remedy the harm caused by the violation in a timely 
                manner.

SEC. 4. CRIMINAL PENALTIES.

    (a) In General.--In addition to any penalty applicable under 
section 3, any person who violates section 2 shall be fined under title 
18, United States Code--
            (1) if a corporation, not to exceed $150,000,000; and
            (2) if an individual not to exceed $2,000,000, or 
        imprisoned for not more than 10 years, or both.
    (b) Enforcement.--The criminal penalty provided by subsection (a) 
may be imposed only pursuant to a criminal action brought by the 
Attorney General or other officer of the Department of Justice.

SEC. 5. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of section 2(a) of this 
Act, or to impose the civil penalties authorized by section 3(b)(1)(B), 
whenever the attorney general of the State has reason to believe that 
the interests of the residents of the State have been or are being 
threatened or adversely affected by a violation of this Act or a 
regulation under this Act, involving a retail sale.
    (b) Notice.--The State shall serve written notice to the Federal 
Trade Commission of any civil action under subsection (a) prior to 
initiating such civil action. The notice shall include a copy of the 
complaint to be filed to initiate such civil action, except that if it 
is not feasible for the State to provide such prior notice, the State 
shall provide such notice immediately upon instituting such civil 
action.
    (c) Authority To Intervene.--Upon receiving the notice required by 
subsection (b), the Federal Trade Commission may intervene in such 
civil action and upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    (e) Venue; Service of Process.--In a civil action brought under 
subsection (a)--
            (1) the venue shall be a judicial district in which--
                    (A) the defendant operates;
                    (B) the defendant was authorized to do business; or
                    (C) the defendant in the civil action is found;
            (2) process may be served without regard to the territorial 
        limits of the district or of the State in which the civil 
        action is instituted; and
            (3) a person who participated with the defendant in an 
        alleged violation that is being litigated in the civil action 
        may be joined in the civil action without regard to the 
        residence of the person.
    (f) Limitation on State Action While Federal Action Is Pending.--If 
the Federal Trade Commission has instituted a civil action or an 
administrative action for violation of this Act, no State attorney 
general, or official or agency of a State, may bring an action under 
this subsection during the pendency of that action against any 
defendant named in the complaint of the Federal Trade Commission or the 
other agency for any violation of this Act alleged in the complaint.
    (g) Enforcement of State Law.--Nothing contained in this section 
shall prohibit an authorized State official from proceeding in State 
court to enforce a civil or criminal statute of such State.

SEC. 6. LOW INCOME ENERGY ASSISTANCE.

    Amounts collected in fines and penalties under section 3 of this 
Act shall be deposited in a separate fund in the treasury to be known 
as the Consumer Relief Trust Fund. To the extent provided for in 
advance in appropriations Acts, the fund shall be used to provide 
assistance under the Low Income Home Energy Assistance Program 
administered by the Secretary of Health and Human Services.

SEC. 7. EFFECT ON OTHER LAWS.

    (a) Other Authority of Federal Trade Commission.--Nothing in this 
Act shall be construed to limit or affect in any way the Federal Trade 
Commission's authority to bring enforcement actions or take any other 
measure under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) 
or any other provision of law.
    (b) State Law.--Nothing in this Act preempts any State law.

            Passed the House of Representatives May 23, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.