Disaster and Emergency Pricing Abuse Prevention Act

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. Short title This Act may be cited as the Disaster and Emergency Pricing Abuse Prevention Act 2. Definitions In this section: (a) Commission The term Commission (b) Essential goods or services The term essential goods or services (c) Natural disaster The term natural disaster (d) Person The term person (e) State of emergency The term state of emergency (f) Unconscionably excessive price The term unconscionably excessive price 3. Federal Trade Commission enforcement against price gouging (a) Violation Selling, or offering for sale, essential goods and services, in or affecting commerce, at an unconscionably excessive price during, or in anticipation of, a natural disaster, pandemic, or state of emergency, shall constitute an unfair or deceptive act or practice under section 5(a) of the Federal Trade Commission Act ( 15 U.S.C. 45(a) (b) Civil action (1) In general If the Commission has reason to believe that there has been a violation of section 5(a) of the Federal Trade Commission Act ( 15 U.S.C. 45(a) (2) Presumption In a civil action under paragraph (1), the price of an essential good or service shall be presumed to be an unconscionably excessive price if the price charged or offered by the defendant during, or in anticipation of, a natural disaster, pandemic, or state of emergency, exceeded by 20 percent the greater of— (A) the average price charged by the defendant for the essential good or service during the preceding 60 days before the public could reasonably have anticipated the natural disaster, pandemic, or state of emergency; or (B) the average price at which buyers could obtain such good or service or similar goods or services in the geographic area during the 60 day period before the date on which the public could reasonably have anticipated the natural disaster, pandemic, or state of emergency, unless the price charged by the defendant is attributable to price increases in related input markets or to additional expenses not within the control of the defendant that increased the defendant’s costs to furnish the essential goods or services. (3) Civil penalty In an action under paragraph (1), any person that has been found liable for a violation of section 5(a) of the Federal Trade Commission Act ( 15 U.S.C. 45(a) (4) Rule of construction The civil penalty provided in this subsection is in addition to, and not in lieu of, any other remedies provided by Federal law, including injunctive relief under section 13(b) of the Federal Trade Commission Act ( 15 U.S.C. 53(b) 4. Price gouging hotline The Commission shall establish a telephone hotline and an online portal dedicated solely to receiving price gouging complaints from the public, which shall be activated in anticipation of or during major disasters or states of emergency and shall remain operational until 120 days after the conclusion of such major disasters or states of emergency. 5. No preemption of State law Nothing in this Act preempts any State law.

Summary: Disaster and Emergency Pricing Abuse Prevention ActThis bill prohibits a&nbsp;person from&nbsp;selling or offering for sale an essential good or service at a price that is unconscionably excessive during, or in anticipation of, a state of emergency or natural disaster. Additionally, the bill establishes a telephone hotline to receive complaints from the public about potential violations of this prohibition.