II 

Calendar No. 461 

109TH CONGRESS 

2D SESSION H. R. 5253 

IN THE SENATE OF THE UNITED STATES 

MAY 4, 2006 

Received 

MAY 26, 2006 

Read the first time 

JUNE 5, 2006 

Read the second time and placed on the calendar 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

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

3 Protection Act of 2006’’. 

4 SEC. 2. GASOLINE PRICE GOUGING PROHIBITED. 

5 (a) UNLAWFUL CONDUCT.— 

6 (1) UNFAIR AND DECEPTIVE ACT OR PRAC7 TICE.—It shall be an unfair or deceptive act or prac8 tice in violation of section 5 of the Federal Trade 

9 Commission Act for any person to sell crude oil, gas10 oline, diesel fuel, home heating oil, or any biofuel at 

11 a price that constitutes price gouging as defined by 

12 rule pursuant to subsection (b). 

13 (2) DEFINITION.—For purposes of this sub14 section, the term ‘‘biofuel’’ means any fuel con15 taining any organic matter that is available on a re16 newable or recurring basis, including agricultural 

17 crops and trees, wood and wood wastes and residues, 

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

19 fibers, and animal wastes, municipal wastes, and 

20 other waste materials. 

21 (b) PRICE GOUGING.— 

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

23 after the date of the enactment of this Act, the Fed24 eral Trade Commission shall promulgate, in accord25 ance with section 553 of title 5, United States Code, 


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1 any rules necessary for the enforcement of this sec2 tion. 

3 (2) CONTENTS.—Such rules— 

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

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

6 Act; and 

7 (B) shall be consistent with the require8 ments for declaring unfair acts or practices in 

9 section 5(n) of the Federal Trade Commission 

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

11 (c) ENFORCEMENT.— 

12 (1) IN GENERAL.—Except as provided in sub13 section (d), a violation of subsection (a) shall be 

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

15 deceptive act or practice prescribed under section 

16 18(a)(1)(B) of the Federal Trade Commission Act 

17 (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Com18 mission shall enforce this Act in the same manner, 

19 by the same means, and with the same jurisdiction 

20 as though all applicable terms and provisions of the 

21 Federal Trade Commission Act were incorporated 

22 into and made a part of this Act. 

23 (2) EXCLUSIVE ENFORCEMENT.—Notwith24 standing any other provision of law, no person, 

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


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HR 5253 PCS 

1 the Federal Trade Commission or the Attorney Gen2 eral of the United States to the extent provided for 

3 in section 5 of the Federal Trade Commission Act 

4 or the attorney general of a State as provided by 

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

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

7 (d) ENFORCEMENT BY STATE ATTORNEYS GEN8 ERAL.— 

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

10 attorney general of a State has reason to believe 

11 that an interest of the residents of that State has 

12 been or is threatened or adversely affected by any 

13 person who violates subsection (a), the attorney gen14 eral, as parens patriae, may bring a civil action on 

15 behalf of the residents of the State in a district 

16 court of the United States of appropriate jurisdic17 tion— 

18 (A) to enjoin further violation of such sec19 tion by the defendant; 

20 (B) to compel compliance with such sec21 tion; or 

22 (C) to impose a civil penalty under sub23 section (e). 

24 (2) INTERVENTION BY THE FTC.— 


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1 (A) NOTICE AND INTERVENTION.—The 

2 State shall provide prior written notice of any 

3 action under paragraph (1) to the Federal 

4 Trade Commission and provide the Commission 

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

6 in which such prior notice is not feasible, in 

7 which case the State shall serve such notice im8 mediately upon instituting such action. The 

9 Commission shall have the right— 

10 (i) to intervene in the action; 

11 (ii) upon so intervening, to be heard 

12 on all matters arising therein; and 

13 (iii) to file petitions for appeal. 

14 (B) LIMITATION ON STATE ACTION WHILE

15 FEDERAL ACTION IS PENDING.—If the Commis16 sion has instituted a civil action for violation of 

17 this Act, no attorney general of a State may 

18 bring an action under this subsection during 

19 the pendency of that action against any defend20 ant named in the complaint of the Commission 

21 for any violation of this Act alleged in the com22 plaint. 

23 (3) CONSTRUCTION WITH RESPECT TO POWERS

24 CONFERRED BY STATE LAW.—For purposes of 

25 bringing any civil action under paragraph (1), nothVerDate Aug 31 2005 14:37 Jun 06, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5253.PCS H5253

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1 ing in this Act shall be construed to prevent an at2 torney general of a State from exercising the powers 

3 conferred on the attorney general by the laws of that 

4 State. 

5 (e) CIVIL PENALTY.— 

6 (1) IN GENERAL.—Notwithstanding any civil 

7 penalty that otherwise applies to a violation of a rule 

8 referred to in subsection (c)(1), any person who vio9 lates subsection (a) shall be liable for a civil penalty 

10 under this subsection. 

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

12 under this subsection shall be an amount equal to— 

13 (A) in the case of a wholesale sale in viola14 tion of subsection (a), the sum of— 

15 (i) 3 times the difference between— 

16 (I) the total amount charged in 

17 the wholesale sale; and 

18 (II) the total amount that would 

19 be charged in such a wholesale sale 

20 made at the wholesale fair market 

21 price; plus 

22 (ii) an amount not to exceed 

23 $3,000,000 per day of a continuing viola24 tion; or 


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

2 of subsection (a), 3 times the difference be3 tween— 

4 (i) the total amount charged in the 

5 sale; and 

6 (ii) the total amount that would be 

7 charged in such a sale at the fair market 

8 price for such a sale. 

9 (3) DEPOSIT.—Of the amount of any civil pen10 alty imposed under this section with respect to any 

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

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

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

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

15 (A) any account or fund established under 

16 the laws of the State and used for paying com17 pensation to consumers for violations of State 

18 consumer protection laws; or 

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

20 such account or fund is establish by State law, 

21 into the general fund of the State treasury. 

22 (f) CRIMINAL PENALTY.— 

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

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

25 punishable— 


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1 (A) in the case of a wholesale sale in viola2 tion of subsection (a), by a fine of not more 

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

4 than 2 years, or both; or 

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

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

7 $2,000,000, imprisonment for not more than 2 

8 years, or both. 

9 (2) ENFORCEMENT.—The criminal penalty pro10 vided by paragraph (1) may be imposed only pursu11 ant to a criminal action brought by the Attorney 

12 General or other officer of the Department of Jus13 tice, or any attorney specially appointed by the At14 torney General, in accordance with section 515 of 

15 title 28, United States Code. 

Passed the House of Representatives May 3, 2006. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 461 

109TH CONGRESS 

2D SESSION H. R. 5253 

AN ACT 

To prohibit price gouging in the sale of gasoline, 

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

JUNE 5, 2006 

Read the second time and placed on the calendar 


hsrobinson on PROD1PC72 with BILLS