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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1744 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1744

  To prohibit price gouging relating to gasoline and diesel fuels in 
                   areas affected by major disasters.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2005

  Mr. Nelson of Florida (for himself and Mr. Bingaman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
  To prohibit price gouging relating to gasoline and diesel fuels in 
                   areas affected by major disasters.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Price Gouging Act of 2005''.

SEC. 2. PRICE GOUGING PROHIBITION FOLLOWING MAJOR DISASTERS.

    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
amended--
            (1) by redesignating sections 25 and 26 (15 U.S.C. 57c, 58) 
        as sections 26 and 27, respectively; and
            (2) by inserting after section 24 (15 U.S.C. 57b-5) the 
        following:

``SEC. 25. PROTECTION FROM PRICE GOUGING FOLLOWING MAJOR DISASTERS.

    ``(a) Definitions.--In this section:
            ``(1) Affected area.--The term `affected area' means an 
        area affected by a major disaster declared by the President 
        under Federal law in existence on the date of enactment of this 
        subsection.
            ``(2) Price gouging.--The term `price gouging' means the 
        charging of an unconscionably excessive price by a supplier in 
        an affected area.
            ``(3) Supplier.--The term `supplier' means any person that 
        sells gasoline or diesel fuel for resale or ultimate 
        consumption.
            ``(4) Unconscionably excessive price.--The term 
        `unconscionably excessive price' means a price charged in an 
        affected area for gasoline or diesel fuel that--
                    ``(A) represents a gross disparity, as determined 
                by the Commission in accordance with subsection (e), 
                between the price charged for gasoline or diesel fuel 
                and the average price of gasoline or diesel fuel 
                charged by suppliers in the affected area during the 
                30-day period immediately before the President declares 
                the existence of a major disaster; and
                    ``(B) is not attributable to increased wholesale or 
                operational costs incurred by the supplier in 
                connection with the sale of gasoline or diesel fuel.
    ``(b) Determination of the Commission.--Following the declaration 
of a major disaster by the President, the Commission shall--
            ``(1) consult with the Attorney General, the United States 
        Attorney for the district in which the disaster occurred, and 
        State and local law enforcement officials to determine whether 
        any supplier in the affected area is charging or has charged an 
        unconscionably excessive price for gasoline or diesel fuel 
        provided in the affected area; and
            ``(2) establish within the Commission--
                    ``(A) a toll-free hotline that a consumer may call 
                to report an incidence of price gouging in the affected 
                area; and
                    ``(B) a program to develop and distribute to the 
                public informational materials in English and Spanish 
                to assist residents of the affected area in detecting 
                and avoiding price gouging.
    ``(c) Price Gouging Involving Disaster Victims.--
            ``(1) Offense.--During the 180-day period after the date on 
        which a major disaster is declared by the President, no 
        supplier shall sell, or offer to sell, gasoline or diesel fuel 
        in an affected area at an unconscionably excessive price.
            ``(2) Action by commission.--
                    ``(A) In general.--During the period described in 
                paragraph (1), the Commission shall conduct 
                investigations to determine whether any supplier in an 
                affected area is in violation of paragraph (1).
                    ``(B) Positive determination.--If the Commission 
                determines under subparagraph (A) that a supplier is in 
                violation of paragraph (1), the Commission shall take 
                any action the Commission determines to be appropriate 
                to remedy the violation.
            ``(3) Civil penalties.--A supplier that commits an offense 
        described in paragraph (1) may, in a civil action brought in a 
        court of competent jurisdiction, be subject to--
                    ``(A) a civil penalty of not more than $500,000;
                    ``(B) an order to pay special and punitive damages;
                    ``(C) an order to pay reasonable attorney's fees;
                    ``(D) an order to pay costs of litigation relating 
                to the offense;
                    ``(E) an order for disgorgement of profits earned 
                as a result of a violation of paragraph (1); and
                    ``(F) any other relief determined by the court to 
                be appropriate.
            ``(4) Criminal penalty.--A supplier that knowingly commits 
        an offense described in paragraph (1) shall be imprisoned not 
        more than 1 year.
            ``(5) Action by victims.--A person, Federal agency, State, 
        or local government that suffers loss or damage as a result of 
        a violation of paragraph (1) may bring a civil action against a 
        supplier in any court of competent jurisdiction for 
        disgorgement, special or punitive damages, injunctive relief, 
        reasonable attorney's fees, costs of the litigation, and any 
        other appropriate legal or equitable relief.
            ``(6) Action by state attorneys general.--An attorney 
        general of a State, or other authorized State official, may 
        bring a civil action in the name of the State, on behalf of 
        persons residing in the State, in any court of competent 
        jurisdiction for disgorgement, special or punitive damages, 
        reasonable attorney's fees, costs of litigation, and any other 
        appropriate legal or equitable relief.
            ``(7) No preemption.--Nothing in this section preempts any 
        State law.
    ``(d) Report.--Not later than 1 year after the date of enactment of 
this subsection, and annually thereafter, the Commission shall submit 
to the Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives a report describing--
            ``(1) the number of price gouging complaints received by 
        the Commission for each major disaster declared by the 
        President during the preceding year;
            ``(2) the number of price gouging investigations of the 
        Commission initiated, in progress, and completed as of the date 
        on which the report is prepared;
            ``(3) the number of enforcement actions of the Commission 
        initiated, in progress, and completed as of the date on which 
        the report is prepared;
            ``(4) an evaluation of the effectiveness of the toll-free 
        hotline and program established under subsection (b)(2); and
            ``(5) recommendations for any additional action with 
        respect to the implementation or effectiveness of this section.
    ``(e) Definition of Gross Disparity.--Not later than 180 days after 
the date of enactment of this subsection, the Commission shall 
promulgate regulations to define the term `gross disparity' for 
purposes of this section.''.

SEC. 3. EFFECT OF ACT.

    Nothing in this Act, or an amendment made by this Act, affects any 
authority of the Federal Trade Commission in existence on the date of 
enactment of this Act with respect to price gouging actions.
                                 <all>
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