II 

110TH CONGRESS 

1ST SESSION S. 1520 

To prohibit price gouging relating to gasoline and diesel fuels in areas affected 

by major disasters. 

IN THE SENATE OF THE UNITED STATES 

MAY 24, 2007 

Mr. NELSON of Florida 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. 

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 Act of 

5 2007’’. 

6 SEC. 2. FUEL PRICE GOUGING PROHIBITION FOLLOWING 

7 MAJOR DISASTERS. 

8 (a) IN GENERAL.—The Federal Trade Commission 

9 Act (15 U.S.C. 41 et seq.) is amended by inserting after 

10 section 24 (15 U.S.C. 57b–5) the following: 


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1 ‘‘SEC. 24A. PROTECTION FROM FUEL PRICE GOUGING FOL2 LOWING MAJOR DISASTERS. 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) AFFECTED AREA.—The term ‘affected 

5 area’ means an area affected by a major disaster de6 clared by the President under Federal law in effect 

7 on the date of the enactment of this section. 

8 ‘‘(2) PRICE GOUGING.—The term ‘price 

9 gouging’ means the charging of an unconscionably 

10 excessive price by a supplier in an affected area. 

11 ‘‘(3) SUPPLIER.—The term ‘supplier’ means 

12 any person that sells gasoline or diesel fuel for resale 

13 or ultimate consumption. 

14 ‘‘(4) UNCONSCIONABLY EXCESSIVE PRICE.— 

15 The term ‘unconscionably excessive price’ means a 

16 price charged in an affected area for gasoline or die17 sel fuel that— 

18 ‘‘(A) represents a gross disparity, as deter19 mined by the Commission in accordance with 

20 subsection (e), between the price charged for 

21 gasoline or diesel fuel and the average price of 

22 gasoline or diesel fuel charged by suppliers in 

23 the affected area during the 30-day period end24 ing on the date the President declares the exist25 ence of a major disaster; and 


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1 ‘‘(B) is not attributable to increased whole2 sale or operational costs incurred by the sup3 plier in connection with the sale of gasoline or 

4 diesel fuel. 

5 ‘‘(b) DETERMINATION OF THE COMMISSION.—As 

6 soon as practicable after the President declares a major 

7 disaster, the Commission shall— 

8 ‘‘(1) consult with the Attorney General, the 

9 United States Attorney for the district in which the 

10 disaster occurred, and State and local law enforce11 ment officials to determine whether any supplier in 

12 the affected area is charging or has charged an un13 conscionably excessive price for gasoline or diesel 

14 fuel provided in the affected area; and 

15 ‘‘(2) establish within the Commission— 

16 ‘‘(A) a toll-free hotline that a consumer 

17 may call to report an incidence of price gouging 

18 in the affected area; and 

19 ‘‘(B) a program to develop and distribute 

20 to the public informational materials in English 

21 and Spanish to consumers in the affected area 

22 on detecting and avoiding price gouging. 

23 ‘‘(c) PRICE GOUGING INVOLVING DISASTER VIC24 TIMS.— 


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1 ‘‘(1) OFFENSE.—During the 180-day period be2 ginning on the date on which a major disaster is de3 clared by the President, it shall be unlawful for a 

4 supplier to sell, or offer to sell, gasoline or diesel fuel 

5 in an affected area at an unconscionably excessive 

6 price. 

7 ‘‘(2) ACTION BY COMMISSION.— 

8 ‘‘(A) IN GENERAL.—During the period de9 scribed in paragraph (1), the Commission shall 

10 conduct investigations of complaints by con11 sumers of price gouging by suppliers in an af12 fected area. 

13 ‘‘(B) POSITIVE DETERMINATION.—If the 

14 Commission determines under subparagraph 

15 (A) that a supplier is in violation of paragraph 

16 (1), the Commission shall take any action the 

17 Commission determines to be appropriate to 

18 remedy the violation. 

19 ‘‘(3) CIVIL PENALTIES.—A supplier who com20 mits a violation described in paragraph (1) may, in 

21 a civil action brought in a court of competent juris22 diction, be subject to— 

23 ‘‘(A) a civil penalty of not more than 

24 $500,000; 


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1 ‘‘(B) an order to pay special and punitive 

2 damages; 

3 ‘‘(C) an order to pay reasonable attorney’s 

4 fees; 

5 ‘‘(D) an order to pay costs of litigation re6 lating to the offense; 

7 ‘‘(E) an order for disgorgement of profits 

8 earned as a result of a violation of paragraph 

9 (1); and 

10 ‘‘(F) any other relief determined by the 

11 court to be appropriate. 

12 ‘‘(4) CRIMINAL PENALTY.—A supplier that 

13 knowingly commits a violation described in para14 graph (1) shall be imprisoned not more than 1 year. 

15 ‘‘(5) ACTION BY VICTIMS.—A person, Federal 

16 agency, State, or local government that suffers loss 

17 or damage as a result of a violation of paragraph (1) 

18 may bring a civil action against a supplier in any 

19 court of competent jurisdiction for disgorgement, 

20 special or punitive damages, injunctive relief, reason21 able attorney’s fees, costs of the litigation, and any 

22 other appropriate legal or equitable relief. 

23 ‘‘(6) ACTION BY STATE ATTORNEYS GEN24 ERAL.—An attorney general of a State, or other au25 thorized State official, may bring a civil action in the 


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1 name of the State, on behalf of persons residing in 

2 the State, in any court of competent jurisdiction for 

3 disgorgement, special or punitive damages, reason4 able attorney’s fees, costs of litigation, and any other 

5 appropriate legal or equitable relief. 

6 ‘‘(7) NO PREEMPTION.—Nothing in this section 

7 preempts any State law. 

8 ‘‘(d) REPORT.—Not later than 1 year after the date 

9 of the enactment of this section, and annually thereafter, 

10 the Commission shall submit to the Committee on Com11 merce, Science, and Transportation of the Senate and the 

12 Committee on Energy and Commerce of the House of 

13 Representatives a report describing the following: 

14 ‘‘(1) The number of price gouging complaints 

15 received by the Commission for each major disaster 

16 declared by the President during the preceding year. 

17 ‘‘(2) The number of price gouging investiga18 tions of the Commission initiated, in progress, and 

19 completed as of the date on which the report is pre20 pared. 

21 ‘‘(3) The number of enforcement actions of the 

22 Commission initiated, in progress, and completed as 

23 of the date on which the report is prepared. 


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1 ‘‘(4) An evaluation of the effectiveness of the 

2 toll-free hotline and program established under sub3 section (b)(2). 

4 ‘‘(5) Recommendations for any additional ac5 tion with respect to the implementation or effective6 ness of this section. 

7 ‘‘(e) DEFINITION OF GROSS DISPARITY.—Not later 

8 than 180 days after the date of the enactment of this sub9 section, the Commission shall promulgate regulations to 

10 define the term ‘gross disparity’ for purposes of this sec11 tion.’’. 

12 (b) EFFECT OF SECTION.—Nothing in this section, 

13 or the amendment made by this section, affects the au14 thority of the Federal Trade Commission in effect on the 

15 date of the enactment of this Act with respect to price 

16 gouging. 

Æ 


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