I 

110TH CONGRESS 

1ST SESSION H. R. 2335 

To prohibit price gouging in the sale of gasoline, diesel fuel, crude oil, 

and home heating oil, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 15, 2007 

Mrs. WILSON of New Mexico introduced the following bill; which was referred 

to the Committee on Energy and Commerce 

A BILL 

To prohibit price gouging in the sale of gasoline, diesel 

fuel, crude oil, and home heating oil, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Energy Price 

5 Protection Act of 2007’’. 

6 SEC. 2. GASOLINE PRICE GOUGING PROHIBITED. 

7 (a) UNLAWFUL CONDUCT.— 

8 (1) UNFAIR AND DECEPTIVE ACT OR PRAC9 TICE.—It shall be an unfair or deceptive act or prac10 tice in violation of section 5 of the Federal Trade 


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1 Commission Act for any person to sell crude oil, gas2 oline, diesel fuel, home heating oil, or any biofuel at 

3 a price that constitutes price gouging as defined by 

4 rule pursuant to subsection (b). 

5 (2) DEFINITION.—For purposes of this sub6 section, the term ‘‘biofuel’’ means any fuel con7 taining any organic matter that is available on a re8 newable or recurring basis, including agricultural 

9 crops and trees, wood and wood wastes and residues, 

10 plants (including aquatic plants), grasses, residues, 

11 fibers, and animal wastes, municipal wastes, and 

12 other waste materials. 

13 (b) PRICE GOUGING.— 

14 (1) IN GENERAL.—Not later than 6 months 

15 after the date of the enactment of this Act, the Fed16 eral Trade Commission shall promulgate, in accord17 ance with section 553 of title 5, United States Code, 

18 any rules necessary for the enforcement of this sec19 tion. 

20 (2) CONTENTS.—Such rules— 

21 (A) shall define ‘‘price gouging’’, ‘‘retail 

22 sale’’, and ‘‘wholesale sale’’ for purposes of this 

23 Act; and 

24 (B) shall be consistent with the require25 ments for declaring unfair acts or practices in 


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1 section 5(n) of the Federal Trade Commission 

2 Act (15 U.S.C. 45(n)). 

3 (c) ENFORCEMENT.— 

4 (1) IN GENERAL.—Except as provided in sub5 section (d), a violation of subsection (a) shall be 

6 treated as a violation of a rule defining an unfair or 

7 deceptive act or practice prescribed under section 

8 18(a)(1)(B) of the Federal Trade Commission Act 

9 (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Com10 mission shall enforce this Act in the same manner, 

11 by the same means, and with the same jurisdiction 

12 as though all applicable terms and provisions of the 

13 Federal Trade Commission Act were incorporated 

14 into and made a part of this Act. 

15 (2) EXCLUSIVE ENFORCEMENT.—Notwith16 standing any other provision of law, no person, 

17 State, or political subdivision of a State, other than 

18 the Federal Trade Commission or the Attorney Gen19 eral of the United States to the extent provided for 

20 in section 5 of the Federal Trade Commission Act 

21 or the attorney general of a State as provided by 

22 subsection (d), shall have any authority to enforce 

23 this Act or any rule prescribed pursuant to this Act. 

24 (d) ENFORCEMENT BY STATE ATTORNEYS GEN25 ERAL.— 


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1 (1) CIVIL ACTION.—In any case in which the 

2 attorney general of a State has reason to believe 

3 that an interest of the residents of that State has 

4 been or is threatened or adversely affected by any 

5 person who violates subsection (a), the attorney gen6 eral, as parens patriae, may bring a civil action on 

7 behalf of the residents of the State in a district 

8 court of the United States of appropriate jurisdic9 tion— 

10 (A) to enjoin further violation of such sec11 tion by the defendant; 

12 (B) to compel compliance with such sec13 tion; or 

14 (C) to impose a civil penalty under sub15 section (e). 

16 (2) INTERVENTION BY THE FTC.— 

17 (A) NOTICE AND INTERVENTION.—The 

18 State shall provide prior written notice of any 

19 action under paragraph (1) to the Federal 

20 Trade Commission and provide the Commission 

21 with a copy of its complaint, except in any case 

22 in which such prior notice is not feasible, in 

23 which case the State shall serve such notice im24 mediately upon instituting such action. The 

25 Commission shall have the right— 


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1 (i) to intervene in the action; 

2 (ii) upon so intervening, to be heard 

3 on all matters arising therein; and 

4 (iii) to file petitions for appeal. 

5 (B) LIMITATION ON STATE ACTION WHILE

6 FEDERAL ACTION IS PENDING.—If the Commis7 sion has instituted a civil action for violation of 

8 this Act, no attorney general of a State may 

9 bring an action under this subsection during 

10 the pendency of that action against any defend11 ant named in the complaint of the Commission 

12 for any violation of this Act alleged in the com13 plaint. 

14 (3) CONSTRUCTION WITH RESPECT TO POWERS

15 CONFERRED BY STATE LAW.—For purposes of 

16 bringing any civil action under paragraph (1), noth17 ing in this Act shall be construed to prevent an at18 torney general of a State from exercising the powers 

19 conferred on the attorney general by the laws of that 

20 State. 

21 (e) CIVIL PENALTY.— 

22 (1) IN GENERAL.—Notwithstanding any civil 

23 penalty that otherwise applies to a violation of a rule 

24 referred to in subsection (c)(1), any person who vioVerDate Aug 31 2005 19:49 May 16, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2335.IH H2335

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1 lates subsection (a) shall be liable for a civil penalty 

2 under this subsection. 

3 (2) AMOUNT.—The amount of a civil penalty 

4 under this subsection shall be an amount equal to— 

5 (A) in the case of a wholesale sale in viola6 tion of subsection (a), the sum of— 

7 (i) 3 times the difference between— 

8 (I) the total amount charged in 

9 the wholesale sale; and 

10 (II) the total amount that would 

11 be charged in such a wholesale sale 

12 made at the wholesale fair market 

13 price; plus 

14 (ii) an amount not to exceed 

15 $3,000,000 per day of a continuing viola16 tion; or 

17 (B) in the case of a retail sale in violation 

18 of subsection (a), 3 times the difference be19 tween— 

20 (i) the total amount charged in the 

21 sale; and 

22 (ii) the total amount that would be 

23 charged in such a sale at the fair market 

24 price for such a sale. 


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1 (3) DEPOSIT.—Of the amount of any civil pen2 alty imposed under this section with respect to any 

3 sale in violation of subsection (a) to a person that 

4 resides in a State, the portion of such amount that 

5 is determined under subparagraph (A)(i) or (B) (or 

6 both) of paragraph (2) shall be deposited into— 

7 (A) any account or fund established under 

8 the laws of the State and used for paying com9 pensation to consumers for violations of State 

10 consumer protection laws; or 

11 (B) in the case of a State for which no 

12 such account or fund is established by State 

13 law, into the general fund of the State treasury. 

14 (f) CRIMINAL PENALTY.— 

15 (1) IN GENERAL.—In addition to any other 

16 penalty that applies, a violation of subsection (a) is 

17 punishable— 

18 (A) in the case of a wholesale sale in viola19 tion of subsection (a), by a fine of not more 

20 than $150,000,000, imprisonment for not more 

21 than 2 years, or both; or 

22 (B) in the case of a retail sale in violation 

23 of subsection (a), by a fine of not more than 

24 $2,000,000, imprisonment for not more than 2 

25 years, or both. 


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1 (2) ENFORCEMENT.—The criminal penalty pro2 vided by paragraph (1) may be imposed only pursu3 ant to a criminal action brought by the Attorney 

4 General or other officer of the Department of Jus5 tice, or any attorney specially appointed by the At6 torney General, in accordance with section 515 of 

7 title 28, United States Code. 

Æ 


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