II 

116TH CONGRESS 

2D SESSION S. 3853 

To prevent price gouging during emergencies, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 1, 2020 

Ms. WARREN (for herself and Ms. HARRIS) introduced the following bill; which 

was read twice and referred to the Committee on Commerce, Science, and 

Transportation 

A BILL 

To prevent price gouging during emergencies, 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 ‘‘Price Gouging Preven5 tion Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) During a national emergency, state of emer9 gency, or public health emergency, some merchants 


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1 have taken unfair advantage of consumers by greatly 

2 increasing prices for essential consumer goods. 

3 (2) When a declared national emergency or 

4 state of emergency results in abnormal disruptions 

5 of the market, the public interest requires that ex6 cessive and unjustified increases in the prices of es7 sential consumer goods be prohibited. 

8 (3) To protect citizens from excessive and un9 justified increases in the prices charged during or 

10 shortly after a declared national emergency, state of 

11 emergency, or public health emergency for consumer 

12 goods and supplies that are vital and necessary for 

13 the health, safety, and welfare of consumers is of ut14 most concern and importance. 

15 SEC. 3. PREVENTION OF PRICE GOUGING DURING EMER16 GENCIES. 

17 (a) IN GENERAL.—During an emergency period and 

18 in a covered geographical area, it shall be unlawful for 

19 a seller to sell or offer for sale a consumer good at an 

20 excessive or opportunistic price. 

21 (b) PRESUMPTION OF EXCESSIVE OR OPPORTUN22 ISTIC PRICE.— 

23 (1) IN GENERAL.—A seller shall be presumed to 

24 be in violation of subsection (a) if, during an emer25 gency period and in a covered geographical area, the 


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1 seller sells or offers for sale a consumer good at a 

2 price that exceeds by more than 10 percent either— 

3 (A) the average price at which the con4 sumer good was sold or offered for sale by all 

5 sellers in such area during the 120-day period 

6 preceding such emergency period; or 

7 (B) the average price at which the con8 sumer good was sold or offered for sale by the 

9 seller involved during the 120-day period pre10 ceding such emergency period. 

11 (2) REBUTTAL.—A seller may rebut a presump12 tion under paragraph (1) if the seller demonstrates 

13 by clear and convincing evidence that the increase in 

14 price of the consumer good involved is directly at15 tributable to additional costs paid by the seller in 

16 procuring, acquiring, or providing the consumer dur17 ing the emergency period. 

18 (c) ENFORCEMENT.— 

19 (1) ENFORCEMENT BY FEDERAL TRADE COM20 MISSION.— 

21 (A) UNFAIR OR DECEPTIVE ACTS OR PRAC22 TICES.—A violation of this section shall be 

23 treated as a violation of a regulation under sec24 tion 18(a)(1)(B) of the Federal Trade CommisVerDate Sep 11 2014 04:36 Jun 19, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3853.IS S3853

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1 sion Act (15 U.S.C. 57a(a)(1)(B)) regarding 

2 unfair or deceptive acts or practices. 

3 (B) POWERS OF COMMISSION.—The Com4 mission shall enforce this section in the same 

5 manner, by the same means, and with the same 

6 jurisdiction, powers, and duties as though all 

7 applicable terms and provisions of the Federal 

8 Trade Commission Act (15 U.S.C. 41 et seq.) 

9 were incorporated into and made a part of this 

10 Act. Any person who violates such section shall 

11 be subject to the penalties and entitled to the 

12 privileges and immunities provided in the Fed13 eral Trade Commission Act. 

14 (2) EFFECT ON OTHER LAWS.—Nothing in this 

15 section shall be construed in any way to limit the 

16 authority of the Commission under any other provi17 sion of law or to limit the application of any other 

18 Federal or State law. 

19 (3) ENFORCEMENT BY STATE ATTORNEYS GEN20 ERAL.— 

21 (A) IN GENERAL.—If the attorney general 

22 of a State, or another official or agency des23 ignated by a State, has reason to believe that 

24 any person has violated or is violating this sec25 tion, the attorney general, official, or agency of 


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1 the State, in addition to any authority it may 

2 have to bring an action in State court under 

3 State law, may bring a civil action in any ap4 propriate United States district court or in any 

5 other court of competent jurisdiction, including 

6 a State court, to— 

7 (i) enjoin further such violation by 

8 such person; 

9 (ii) enforce compliance with such sec10 tion; 

11 (iii) obtain civil penalties; and 

12 (iv) obtain damages, restitution, or 

13 other compensation on behalf of residents 

14 of the State. 

15 (B) NOTICE.—Before filing an action 

16 under subparagraph (A), the attorney general, 

17 official, or agency of the State involved shall 

18 provide to the Commission a written notice of 

19 such action and a copy of the complaint for 

20 such action. If the attorney general, official, or 

21 agency determines that it is not feasible to pro22 vide the notice described in this subparagraph 

23 before the filing of the action, the attorney gen24 eral, official, or agency shall provide written no25 tice of the action and a copy of the complaint 


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1 to the Commission immediately upon the filing 

2 of the action. 

3 (C) AUTHORITY OF COMMISSION.—With 

4 respect to an action described in subparagraph 

5 (A), the Commission shall have the right— 

6 (i) to intervene in the action; 

7 (ii) upon so intervening, to be heard 

8 on all matters arising therein; and 

9 (iii) to file petitions for appeal. 

10 (d) DEFINITIONS.—In this section: 

11 (1) COMMISSION.—The term ‘‘Commission’’ 

12 means the Federal Trade Commission. 

13 (2) CONSUMER GOOD.—The term ‘‘consumer 

14 good’’ a good offered in commerce, including— 

15 (A) food, water, ice, flashlights, radios, 

16 batteries, candles, blankets, soaps, diapers, 

17 toiletries, gasoline, generator, temporary shel18 ters, plywood, nails, hammers; 

19 (B) prescription and nonprescription medi20 cations, bandages, gauze, isopropyl alcohol, any 

21 personal protective equipment for protection 

22 from or prevention of a contagious disease, 

23 antibacterial materials; or 

24 (C) goods vital and necessary for the 

25 health, safety, welfare of consumers deemed 


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1 necessary by public health officials during a dis2 aster or emergency described in paragraph 

3 (3)(A). 

4 (3) EMERGENCY PERIOD; COVERED GEO5 GRAPHICAL AREA.— 

6 (A) IN GENERAL.—Subject to subpara7 graph (B), an ‘‘emergency period’’ is the period 

8 during which, and a ‘‘covered geographical 

9 area’’ is a geographical area in which, there ex10 ists— 

11 (i) a major disaster declared by the 

12 President under section 401 of the Robert 

13 T. Stafford Disaster Relief and Emergency 

14 Assistance Act (42 U.S.C. 5170); or 

15 (ii) a public health emergency de16 clared by the Secretary pursuant to section 

17 319 of the Public Health Service Act (42 

18 U.S.C. 247d). 

19 (B) RULE OF APPLICATION.—For pur20 poses of subparagraph (A)— 

21 (i) an ‘‘emergency period’’ with re22 spect to a disaster or emergency declara23 tion described in such subparagraph shall 

24 include the 30-day period following the last 


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1 day that such disaster or emergency dec2 laration is in effect; and 

3 (ii) a geographical area in which there 

4 exists a disaster or emergency described in 

5 subparagraph (A) shall be considered to be 

6 a ‘‘covered geographical area’’ through the 

7 end of the period described in clause (i). 

8 (4) SELLER.—The term ‘‘seller’’ means, with 

9 respect to a consumer good, any person selling or of10 fering for sale such consumer good. 

Æ 


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