II 

117TH CONGRESS 

2D SESSION S. 3839 

To clarify that the Federal Trade Commission Act prohibits excessive and 

unjustified price increases in the sale of certain products and services 

when an emergency or disaster results in abnormal disruptions of the 

market, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2022 

Ms. KLOBUCHAR (for herself, Mr. BLUMENTHAL, Ms. CORTEZ MASTO, and 

Ms. HIRONO) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To clarify that the Federal Trade Commission Act prohibits 

excessive and unjustified price increases in the sale of 

certain products and services when an emergency or disaster results in abnormal disruptions of the market, 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 ‘‘Disaster and Emer5 gency Pricing Abuse Prevention Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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•S 3839 IS

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

2 means the Federal Trade Commission. 

3 (2) ESSENTIAL GOOD OR SERVICE.—The term 

4 ‘‘essential good or service’’ means any good or serv5 ice that may be used to preserve, protect, or sustain 

6 the health, safety, or welfare of members of the pub7 lic from potential harms resulting from a natural 

8 disaster, a pandemic, or the circumstances giving 

9 rise to a state of emergency. 

10 (3) NATURAL DISASTER.—The term ‘‘natural 

11 disaster’’ means a disaster, catastrophe, or emer12 gency, including flood, fire, earthquake, storm, or 

13 other serious act of nature, which threatens the 

14 health, safety, or welfare of the public. 

15 (4) STATE OF EMERGENCY.—The term ‘‘state 

16 of emergency’’ means any state of emergency or dis17 aster declared by the President or by the govern18 ment of any State or territory of the United States. 

19 (5) UNCONSCIONABLY EXCESSIVE PRICE.—The 

20 term ‘‘unconscionably excessive price’’ means a price 

21 that represents a gross disparity between the price 

22 of the essential good or service that is the subject 

23 of an offer or transaction during, or in anticipation 

24 of, a natural disaster, pandemic, or state of emer25 gency and the average price at which such essential 


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1 good or service was offered in the ordinary course of 

2 business prior to any public anticipation of a natural 

3 disaster, pandemic, or state of emergency. 

4 SEC. 3. FEDERAL TRADE COMMISSION ENFORCEMENT 

5 AGAINST PRICE GOUGING. 

6 (a) VIOLATION.—It shall be unlawful for any person 

7 to sell, or offer for sale, in or affecting commerce any es8 sential good or service at an unconscionably excessive price 

9 during, or in anticipation of, a natural disaster, pandemic, 

10 or state of emergency. 

11 (b) ENFORCEMENT.— 

12 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC13 TICES.—A violation of this section or a regulation 

14 promulgated under this section shall be treated as a 

15 violation of a rule defining an unfair or deceptive act 

16 or practice prescribed under section 18(a)(1)(B) of 

17 the Federal Trade Commission Act (15 U.S.C. 

18 57a(a)(1)(B)). 

19 (2) POWERS OF THE COMMISSION.— 

20 (A) IN GENERAL.—Except as otherwise 

21 provided in subparagraph (C), the Commission 

22 shall enforce this section and the regulations 

23 promulgated under this section in the same 

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

25 jurisdiction, powers, and duties as though all 


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1 applicable terms and provisions of the Federal 

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

3 were incorporated into and made a part of this 

4 section. 

5 (B) PRIVILEGES AND IMMUNITIES.—Any 

6 person who violates this section or a regulation 

7 promulgated under this section shall be subject 

8 to the penalties, and entitled to the privileges 

9 and immunities, provided in the Federal Trade 

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

11 (C) APPLICATION TO COMMON CARRIERS

12 AND NONPROFIT ORGANIZATIONS.—Notwith13 standing section 4, 5(a)(2), or 6 of the Federal 

14 Trade Commission Act (15 U.S.C. 44, 45(a)(2), 

15 46) or any jurisdictional limitation of the Com16 mission, the Commission shall also enforce this 

17 section and the regulations promulgated under 

18 this section, in the manner provided under this 

19 subsection, with respect to— 

20 (i) common carriers subject to the 

21 Communications Act of 1934 (47 U.S.C. 

22 151 et seq.) and all Acts amendatory 

23 thereof and supplementary thereto; and 


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1 (ii) organizations not organized to 

2 carry on business for their own profit or 

3 that of their members. 

4 (3) RULEMAKING.—The Commission may pro5 mulgate in accordance with section 553 of title 5, 

6 United States Code, such rules as may be necessary 

7 to carry out this section. 

8 (4) EFFECT ON OTHER LAWS.—Nothing in this 

9 section shall be construed in any way to limit the 

10 authority of the Commission under any other provi11 sion of law. 

12 SEC. 4. PRICE GOUGING HOTLINE. 

13 The Commission shall establish a telephone hotline 

14 and an online mechanism to enable the public to report 

15 price gouging complaints, which shall be activated in an16 ticipation of or during a natural disaster, pandemic, or 

17 state of emergency and shall remain operational until 120 

18 days after the conclusion of such disaster, pandemic, or 

19 state of emergency. 

20 SEC. 5. NO PREEMPTION OF STATE LAW. 

21 Nothing in this Act preempts any State law. 

Æ 


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