I 

110TH CONGRESS 

1ST SESSION H. R. 1252 

To protect consumers from price-gouging of gasoline and other fuels, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2007 

Mr. STUPAK (for himself, Mr. BOUCHER, Mr. ENGEL, Mr. ALLEN, Ms. 

SCHAKOWSKY, Mr. MARKEY, Mr. DOYLE, Ms. BALDWIN, Mr. HILL, Ms. 

HOOLEY, Mr. WEINER, Mr. ROSS, Ms. HARMAN, Mr. MCHUGH, Mr. 

ETHERIDGE, Mr. FRANK of Massachusetts, Ms. HERSETH, Mr. ACKERMAN, Mr. BAIRD, Mr. BISHOP of New York, Mr. KILDEE, Mr. BOSWELL, 

Mr. DEFAZIO, Mr. BRADY of Pennsylvania, Mr. CARNEY, Ms. KILPATRICK, Mr. OBERSTAR, Ms. CLARKE, Mrs. NAPOLITANO, Mr. CLEAVER, Ms. MCCOLLUM of Minnesota, Mr. COHEN, Mr. CONYERS, Mr. DAVIS

of Illinois, Mr. CUMMINGS, Mr. FARR, Mr. VISCLOSKY, Mr. FATTAH, Mr. 

BERRY, Mr. FILNER, Mr. GRIJALVA, Mr. HARE, Mr. HIGGINS, Ms. SUTTON, Ms. HIRONO, Mr. HOLDEN, Mr. CARNAHAN, Mr. HOLT, Mr. JOHNSON of Georgia, Ms. KAPTUR, Mr. LANTOS, Ms. LINDA T. SA ́NCHEZ of 

California, Mr. LIPINSKI, Mr. LYNCH, Mrs. MCCARTHY of New York, 

Mrs. CHRISTENSEN, Mr. BERMAN, Mr. MCGOVERN, Mr. MCNULTY, Mr. 

TAYLOR, Mrs. MALONEY of New York, Ms. MATSUI, Ms. LORETTA

SANCHEZ of California, Mr. MICHAUD, Mr. TIERNEY, Mr. GEORGE MILLER of California, Mr. ALTMIRE, Mr. PATRICK J. MURPHY of Pennsylvania, Ms. BORDALLO, Mr. PASCRELL, Ms. SCHWARTZ, Mr. SERRANO, 

Mr. UDALL of Colorado, Mr. WEXLER, Mr. CAPUANO, Ms. BERKLEY, Ms. 

WOOLSEY, Mr. NADLER, and Mr. RYAN of Ohio) introduced the following 

bill; which was referred to the Committee on Energy and Commerce, and 

in addition to the Committee on Education and Labor, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

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A BILL 

To protect consumers from price-gouging of gasoline and 

other fuels, 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 Price Gouging 

5 Prevention Act’’. 

6 SEC. 2. UNCONSCIONABLE PRICING OF GASOLINE, OIL, 

7 NATURAL GAS, AND PETROLEUM DIS8 TILLATES DURING EMERGENCIES. 

9 (a) UNCONSCIONABLE PRICING.— 

10 (1) IN GENERAL.—It shall be unlawful for any 

11 person to sell crude oil, gasoline, natural gas, or pe12 troleum distillates at a price that— 

13 (A) is unconscionably excessive; or 

14 (B) indicates the seller is taking unfair ad15 vantage unusual market conditions (whether 

16 real or perceived) or the circumstances of an 

17 emergency to increase prices unreasonably. 

18 (2) FACTORS CONSIDERED.—In determining 

19 whether a violation of paragraph (1) has occurred, 

20 there shall be taken into account, among other fac21 tors, whether— 

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1 (A) the amount charged represents a gross 

2 disparity between the price of the crude oil, gas3 oline, natural gas, or petroleum distillate sold 

4 and the average price at which it was offered 

5 for sale by the seller during the preceding 30 

6 days; or 

7 (B) the amount charged grossly exceeds 

8 the price at which the same or similar crude oil, 

9 gasoline, natural gas, or petroleum distillate 

10 was readily obtainable by other purchasers in 

11 the same geographical area. 

12 (3) MITIGATING FACTORS.—In determining 

13 whether a violation of paragraph (1) has occurred, 

14 there also shall be taken into account, among other 

15 factors, whether the price at which the crude oil, 

16 gasoline, natural gas, or petroleum distillate was 

17 sold reasonably reflects additional costs, not within 

18 the control of the seller, that were paid or incurred 

19 by the seller. 

20 (b) FALSE PRICING INFORMATION.—It is unlawful 

21 for any person to report information related to the whole22 sale price of crude oil, gasoline, natural gas, or petroleum 

23 distillates to the Federal Trade Commission if— 

24 (1) that person knew, or reasonably should have 

25 known, the information to be false or misleading; 

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1 (2) the information was required by law to be 

2 reported; and 

3 (3) the person intended the false or misleading 

4 data to affect data compiled by that department or 

5 agency for statistical or analytical purposes with re6 spect to the market for crude oil, gasoline, natural 

7 gas, or petroleum distillates. 

8 (c) MARKET MANIPULATION.—It is unlawful for any 

9 person, directly or indirectly, to use or employ, in connec10 tion with the purchase or sale of crude oil, gasoline, nat11 ural gas, or petroleum distillates at wholesale, any ma12 nipulative or deceptive device or contrivance, in contraven13 tion of such rules and regulations as the Federal Trade 

14 Commission may prescribe as necessary or appropriate in 

15 the public interest or for the protection of United States 

16 citizens. 

17 (d) RULEMAKING.—Not later than 180 days after the 

18 date of the enactment of this Act, the Federal Trade Com19 mission shall promulgate rules necessary and appropriate 

20 to enforce this section. 

21 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS22 SION. 

23 (a) ENFORCEMENT BY FTC.—A violation of section 

24 2 shall be treated as a violation of a rule defining an un25 fair or deceptive act or practice prescribed under section 

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1 18(a)(1)(B) of the Federal Trade Commission Act (15 

2 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 

3 shall enforce this Act in the same manner, by the same 

4 means, and with the same jurisdiction as though all appli5 cable terms and provisions of the Federal Trade Commis6 sion Act were incorporated into and made a part of this 

7 Act. In enforcing section 2(a) of this Act, the Commission 

8 shall give priority to enforcement actions concerning com9 panies with total United States wholesale or retail sales 

10 of crude oil, gasoline, and petroleum distillates in excess 

11 of $500,000,000 per year. 

12 (b) CIVIL PENALTIES.— 

13 (1) IN GENERAL.—Notwithstanding the pen14 alties set forth under the Federal Trade Commission 

15 Act, any person who violates this Act shall be sub16 ject to the following penalties: 

17 (A) PRICE GOUGING; UNJUST PROFITS.— 

18 Any person who violates section 2(a) of this Act 

19 shall be subject to— 

20 (i) a fine of not more than 3 times the 

21 amount of profits gained by such person 

22 through such violation; or 

23 (ii) a fine of not more than 

24 $3,000,000. 

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1 (B) FALSE INFORMATION; MARKET MANIP2 ULATION.—Any person who violates section 

3 2(b) or 2(c) of this Act shall be subject to a 

4 civil penalty of not more than $1,000,000. 

5 (2) METHOD OF ASSESSMENT.—The penalties 

6 provided by paragraph (1) shall be assessed in the 

7 same manner as civil penalties imposed under sec8 tion 5 of the Federal Trade Commission Act (15 

9 U.S.C. 45). 

10 (3) MULTIPLE OFFENSES; MITIGATING FAC11 TORS.—In assessing the penalty provided by sub12 section (a)— 

13 (A) each day of a continuing violation shall 

14 be considered a separate violation; and 

15 (B) the Federal Trade Commission shall 

16 take into consideration the seriousness of the 

17 violation and the efforts of the person commit18 ting the violation to remedy the harm caused by 

19 the violation in a timely manner. 

20 SEC. 4. CRIMINAL PENALTIES. 

21 Any person who violates section 2 or any rule or order 

22 issued thereunder shall be fined under title 18, United 

23 States Code— 

24 (1) if a corporation, not to exceed 

25 $150,000,000; or 

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1 (2) if any other person, not to exceed 

2 $2,000,000, or imprisoned for not more than 10 

3 years, or both. 

4 SEC. 5. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTOR5 NEYS GENERAL. 

6 (a) IN GENERAL.—A State, as parens patriae, may 

7 bring a civil action on behalf of its residents in an appro8 priate district court of the United States to enforce the 

9 provisions of section 2(a) of this Act, or to impose the 

10 civil penalties authorized by section 3(b)(1)(B), whenever 

11 the attorney general of the State has reason to believe that 

12 the interests of the residents of the State have been or 

13 are being threatened or adversely affected by a violation 

14 of this Act or a regulation under this Act. 

15 (b) NOTICE.—The State shall serve written notice to 

16 the Federal Trade Commission of any civil action under 

17 subsection (a) prior to initiating such civil action. The no18 tice shall include a copy of the complaint to be filed to 

19 initiate such civil action, except that if it is not feasible 

20 for the State to provide such prior notice, the State shall 

21 provide such notice immediately upon instituting such civil 

22 action. 

23 (c) AUTHORITY TO INTERVENE.—Upon receiving the 

24 notice required by subsection (b), the Federal Trade Commstockstill on PROD1PC66 with BILLS

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1 mission may intervene in such civil action and upon inter2 vening— 

3 (1) be heard on all matters arising in such civil 

4 action; and 

5 (2) file petitions for appeal of a decision in such 

6 civil action. 

7 (d) CONSTRUCTION.—For purposes of bringing any 

8 civil action under subsection (a), nothing in this section 

9 shall prevent the attorney general of a State from exer10 cising the powers conferred on the attorney general by the 

11 laws of such State to conduct investigations or to admin12 ister oaths or affirmations or to compel the attendance 

13 of witnesses or the production of documentary and other 

14 evidence. 

15 (e) VENUE; SERVICE OF PROCESS.—In a civil action 

16 brought under subsection (a)— 

17 (1) the venue shall be a judicial district in 

18 which— 

19 (A) the defendant operates; 

20 (B) the defendant was authorized to do 

21 business; or 

22 (C) where the defendant in the civil action 

23 is found; 

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1 (2) process may be served without regard to the 

2 territorial limits of the district or of the State in 

3 which the civil action is instituted; and 

4 (3) a person who participated with the defend5 ant in an alleged violation that is being litigated in 

6 the civil action may be joined in the civil action with7 out regard to the residence of the person. 

8 (f) LIMITATION ON STATE ACTION WHILE FEDERAL

9 ACTION IS PENDING.—If the Federal Trade Commission 

10 has instituted a civil action or an administrative action 

11 for violation of this Act, no State attorney general, or offi12 cial or agency of a State, may bring an action under this 

13 subsection during the pendency of that action against any 

14 defendant named in the complaint of the Federal Trade 

15 Commission or the other agency for any violation of this 

16 Act alleged in the complaint. 

17 (g) ENFORCEMENT OF STATE LAW.—Nothing con18 tained in this section shall prohibit an authorized State 

19 official from proceeding in State court to enforce a civil 

20 or criminal statute of such State. 

21 SEC. 6. LOW INCOME ENERGY ASSISTANCE. 

22 Amounts collected in fines and penalties under sec23 tions 3 or 4 of this Act shall be deposited in a separate 

24 fund in the treasury to be known as the Consumer Relief 

25 Trust Fund. To the extent provided for in advance in apmstockstill on PROD1PC66 with BILLS

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1 propriations Acts fund shall be used to provide assistance 

2 under the Low Income Home Energy Assistance Program 

3 administered by the Secretary of Health and Human Serv4 ices. 

5 SEC. 7. EFFECT ON OTHER LAWS. 

6 (a) OTHER AUTHORITY OF FEDERAL TRADE COM7 MISSION.—Nothing in this Act shall be construed to limit 

8 or affect in any way the Federal Trade Commission’s au9 thority to bring enforcement actions or take any other 

10 measure under the Federal Trade Commission Act (15 

11 U.S.C. 41 et seq.) or any other provision of law. 

12 (b) STATE LAW.—Nothing in this Act preempts any 

13 State law. 

14 SEC. 8. MARKET TRANSPARENCY FOR CRUDE OIL, GASO15 LINE, AND PETROLEUM DISTILLATES. 

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

17 shall facilitate price transparency in markets for the sale 

18 of crude oil and essential petroleum products at wholesale, 

19 having due regard for the public interest, the integrity of 

20 those markets, fair competition, and the protection of con21 sumers. 

22 (b) MARKETPLACE TRANSPARENCY.— 

23 (1) DISSEMINATION OF INFORMATION.—In car24 rying out this section the Federal Trade Commission 

25 shall provide by rule for the dissemination, on a 

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1 timely basis, of information about the availability 

2 and prices of wholesale crude oil, gasoline, and pe3 troleum distillates to the Federal Trade Commission, 

4 States, wholesale buyers and sellers, and the public. 

5 (2) PROTECTION OF PUBLIC FROM ANTI6 COMPETITIVE ACTIVITY.—In determining the infor7 mation to be made available under this section and 

8 time to make the information available, the Federal 

9 Trade Commission shall seek to ensure that con10 sumers and competitive markets are protected from 

11 the adverse effects of potential collusion or other 

12 anticompetitive behaviors that can be facilitated by 

13 untimely public disclosure of transaction-specific in14 formation. 

15 (3) PROTECTION OF MARKET MECHANISMS.— 

16 The Federal Trade Commission shall withhold from 

17 public disclosure under this section any information 

18 the Commission determines would, if disclosed, be 

19 detrimental to the operation of an effective market 

20 or jeopardize system security. 

21 (c) INFORMATION SOURCES.— 

22 (1) IN GENERAL.—In carrying out subsection 

23 (b), the Federal Trade Commission may— 

24 (A) obtain information from any market 

25 participant; and 

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1 (B) rely on entities other than the Com2 mission to receive and make public the informa3 tion, subject to the disclosure rules in sub4 section (b)(3). 

5 (2) PUBLISHED DATA.—In carrying out this 

6 section, the Federal Trade Commission shall con7 sider the degree of price transparency provided by 

8 existing price publishers and providers of trade proc9 essing services, and shall rely on such publishers and 

10 services to the maximum extent possible. 

11 (3) ELECTRONIC INFORMATION SYSTEMS.—The 

12 Federal Trade Commission may establish an elec13 tronic information system if it determines that exist14 ing price publications are not adequately providing 

15 price discovery or market transparency. Nothing in 

16 this section, however, shall affect any electronic in17 formation filing requirements in effect under this 

18 Act as of the date of enactment of this section. 

19 (4) DE MINIMUS EXCEPTION.—The Federal 

20 Trade Commission may not require entities who 

21 have a de minimus market presence to comply with 

22 the reporting requirements of this section. 

23 (d) COOPERATION WITH OTHER FEDERAL AGEN24 CIES.— 

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1 (1) MEMORANDUM OF UNDERSTANDING.— 

2 Within 180 days after the date of enactment of this 

3 Act, the Federal Trade Commission shall conclude a 

4 memorandum of understanding with the Commodity 

5 Futures Trading Commission and other appropriate 

6 agencies (if applicable) relating to information shar7 ing, which shall include provisions— 

8 (A) ensuring that information requests to 

9 markets within the respective jurisdiction of 

10 each agency are properly coordinated to mini11 mize duplicative information requests; and 

12 (B) regarding the treatment of proprietary 

13 trading information. 

14 (2) CFTC JURISDICTION.—Nothing in this sec15 tion may be construed to limit or affect the exclusive 

16 jurisdiction of the Commodity Futures Trading 

17 Commission under the Commodity Exchange Act (7 

18 U.S.C. 1 et seq.). 

19 (e) RULEMAKING.—Within 180 days after the date 

20 of enactment of this Act, the Federal Trade Commission 

21 shall initiate a rulemaking proceeding to establish such 

22 rules as the Commission determines to be necessary and 

23 appropriate to carry out this section. 

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