I 

109TH CONGRESS 

2D SESSION H. R. 5253 

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 2, 2006 

Mrs. WILSON of New Mexico (for herself, Mr. BASS, Mr. SHAYS, Mr. HALL, 

Mr. DEAL of Georgia, Mr. BILIRAKIS, Mr. SHIMKUS, Mr. PITTS, Mr. 

NORWOOD, Mr. BURGESS, Mrs. BONO, Mr. BUYER, Mr. ROGERS of 

Michigan, Mr. CHOCOLA, Mr. BRADLEY of New Hampshire, Mr. FERGUSON, Mrs. CUBIN, Mr. WALDEN of Oregon, Mrs. JOHNSON of Connecticut, Mr. SULLIVAN, Mr. UPTON, Mr. BARTON of Texas, and Mr. 

WAMP) 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 2006’’. 

6 SEC. 2. GASOLINE PRICE GOUGING PROHIBITED. 

7 (a) UNLAWFUL CONDUCT.— 


ycherry on PROD1PC64 with BILLS
2 

•HR 5253 IH 

1 (1) UNFAIR AND DECEPTIVE ACT OR PRAC2 TICE.—It shall be an unfair or deceptive act or prac3 tice in violation of section 5 of the Federal Trade 

4 Commission Act for any person to sell crude oil, gas5 oline, diesel fuel, home heating oil, or any biofuel at 

6 a price that constitutes price gouging as defined by 

7 rule pursuant to subsection (b). 

8 (2) DEFINITION.—For purposes of this sub9 section, the term ‘‘biofuel’’ means any fuel con10 taining any organic matter that is available on a re11 newable or recurring basis, including agricultural 

12 crops and trees, wood and wood wastes and residues, 

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

14 fibers, and animal wastes, municipal wastes, and 

15 other waste materials. 

16 (b) PRICE GOUGING.— 

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

18 after the date of the enactment of this Act, the Fed19 eral Trade Commission shall promulgate, in accord20 ance with section 553 of title 5, United States Code, 

21 any rules necessary for the enforcement of this sec22 tion. 

23 (2) CONTENTS.—Such rules— 


ycherry on PROD1PC64 with BILLS
3 

•HR 5253 IH 

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

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

3 Act; and 

4 (B) shall be consistent with the require5 ments for declaring unfair acts or practices in 

6 section 5(n) of the Federal Trade Commission 

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

8 (c) ENFORCEMENT.— 

9 (1) IN GENERAL.—Except as provided in sub10 section (d), a violation of subsection (a) shall be 

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

12 deceptive act or practice prescribed under section 

13 18(a)(1)(B) of the Federal Trade Commission Act 

14 (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Com15 mission shall enforce this Act in the same manner, 

16 by the same means, and with the same jurisdiction 

17 as though all applicable terms and provisions of the 

18 Federal Trade Commission Act were incorporated 

19 into and made a part of this Act. 

20 (2) EXCLUSIVE ENFORCEMENT.—Notwith21 standing any other provision of law, no person, 

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

23 the Federal Trade Commission or the Attorney Gen24 eral of the United States to the extent provided for 

25 in section 5 of the Federal Trade Commission Act 


ycherry on PROD1PC64 with BILLS
4 

•HR 5253 IH 

1 or the attorney general of a State as provided by 

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

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

4 (d) ENFORCEMENT BY STATE ATTORNEYS GEN5 ERAL.— 

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

7 attorney general of a State has reason to believe 

8 that an interest of the residents of that State has 

9 been or is threatened or adversely affected by any 

10 person who violates subsection (a), the attorney gen11 eral, as parens patriae, may bring a civil action on 

12 behalf of the residents of the State in a district 

13 court of the United States of appropriate jurisdic14 tion— 

15 (A) to enjoin further violation of such sec16 tion by the defendant; 

17 (B) to compel compliance with such sec18 tion; or 

19 (C) to impose a civil penalty under sub20 section (e). 

21 (2) INTERVENTION BY THE FTC.— 

22 (A) NOTICE AND INTERVENTION.—The 

23 State shall provide prior written notice of any 

24 action under paragraph (1) to the Federal 

25 Trade Commission and provide the Commission 


ycherry on PROD1PC64 with BILLS
5 

•HR 5253 IH 

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

2 in which such prior notice is not feasible, in 

3 which case the State shall serve such notice im4 mediately upon instituting such action. The 

5 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 (B) LIMITATION ON STATE ACTION WHILE

11 FEDERAL ACTION IS PENDING.—If the Commis12 sion has instituted a civil action for violation of 

13 this Act, no attorney general of a State may 

14 bring an action under this subsection during 

15 the pendency of that action against any defend16 ant named in the complaint of the Commission 

17 for any violation of this Act alleged in the com18 plaint. 

19 (3) CONSTRUCTION WITH RESPECT TO POWERS

20 CONFERRED BY STATE LAW.—For purposes of 

21 bringing any civil action under paragraph (1), noth22 ing in this Act shall be construed to prevent an at23 torney general of a State from exercising the powers 

24 conferred on the attorney general by the laws of that 

25 State. 


ycherry on PROD1PC64 with BILLS
6 

•HR 5253 IH 

1 (e) CIVIL PENALTY.— 

2 (1) IN GENERAL.—Notwithstanding any civil 

3 penalty that otherwise applies to a violation of a rule 

4 referred to in subsection (c)(1), any person who vio5 lates subsection (a) shall be liable for a civil penalty 

6 under this subsection. 

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

8 under this subsection shall be an amount equal to— 

9 (A) in the case of a wholesale sale in viola10 tion of subsection (a), the sum of— 

11 (i) 3 times the difference between— 

12 (I) the total amount charged in 

13 the wholesale sale; and 

14 (II) the total amount that would 

15 be charged in such a wholesale sale 

16 made at the wholesale fair market 

17 price; plus 

18 (ii) an amount not to exceed 

19 $3,000,000 per day of a continuing viola20 tion; or 

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

22 of subsection (a), 3 times the difference be23 tween— 

24 (i) the total amount charged in the 

25 sale; and 


ycherry on PROD1PC64 with BILLS
7 

•HR 5253 IH 

1 (ii) the total amount that would be 

2 charged in such a sale at the fair market 

3 price for such a sale. 

4 (3) DEPOSIT.—Of the amount of any civil pen5 alty imposed under this section with respect to any 

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

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

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

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

10 (A) any account or fund established under 

11 the laws of the State and used for paying com12 pensation to consumers for violations of State 

13 consumer protection laws; or 

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

15 such account or fund is establish by State law, 

16 into the general fund of the State treasury. 

17 (f) CRIMINAL PENALTY.— 

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

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

20 punishable— 

21 (A) in the case of a wholesale sale in viola22 tion of subsection (a), by a fine of not more 

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

24 than 2 years, or both; or 


ycherry on PROD1PC64 with BILLS
8 

•HR 5253 IH 

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

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

3 $2,000,000, imprisonment for not more than 2 

4 years, or both. 

5 (2) ENFORCEMENT.—The criminal penalty pro6 vided by paragraph (1) may be imposed only pursu7 ant to a criminal action brought by the Attorney 

8 General or other officer of the Department of Jus9 tice, or any attorney specially appointed by the At10 torney General, in accordance with section 515 of 

11 title 28, United States Code. 

Æ 


ycherry on PROD1PC64 with BILLS