Disaster and Emergency Pricing Abuse Prevention Act
Bill: S.3839 | Sponsor: Sen. Klobuchar, Amy (D-MN)
Policy area: Commerce

Summary:
Disaster and Emergency Pricing Abuse Prevention Act
This bill makes it unlawful to sell, or offer for sale, an essential good or service at an unconscionably excessive price during, or in anticipation of, a natural disaster, pandemic, or state of emergency.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster and Emergency Pricing Abuse 
Prevention Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Essential good or service.--The term ``essential good 
        or service'' means any good or service that may be used to 
        preserve, protect, or sustain the health, safety, or welfare of 
        members of the public from potential harms resulting from a 
        natural disaster, a pandemic, or the circumstances giving rise 
        to a state of emergency.
            (3) Natural disaster.--The term ``natural disaster'' means 
        a disaster, catastrophe, or emergency, including flood, fire, 
        earthquake, storm, or other serious act of nature, which 
        threatens the health, safety, or welfare of the public.
            (4) State of emergency.--The term ``state of emergency'' 
        means any state of emergency or disaster declared by the 
        President or by the government of any State or territory of the 
        United States.
            (5) Unconscionably excessive price.--The term 
        ``unconscionably excessive price'' means a price that 
        represents a gross disparity between the price of the essential 
        good or service that is the subject of an offer or transaction 
        during, or in anticipation of, a natural disaster, pandemic, or 
        state of emergency and the average price at which such 
        essential good or service was offered in the ordinary course of 
        business prior to any public anticipation of a natural 
        disaster, pandemic, or state of emergency.

SEC. 3. FEDERAL TRADE COMMISSION ENFORCEMENT AGAINST PRICE GOUGING.

    (a) Violation.--It shall be unlawful for any person to sell, or 
offer for sale, in or affecting commerce any essential good or service 
at an unconscionably excessive price during, or in anticipation of, a 
natural disaster, pandemic, or state of emergency.
    (b) Enforcement.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this section or a regulation promulgated under this section 
        shall be treated as a violation of a rule defining an unfair or 
        deceptive act or practice prescribed under section 18(a)(1)(B) 
        of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Powers of the commission.--
                    (A) In general.--Except as otherwise provided in 
                subparagraph (C), the Commission shall enforce this 
                section and the regulations promulgated under this 
                section in the same manner, by the same means, and with 
                the same jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this section.
                    (B) Privileges and immunities.--Any person who 
                violates this section or a regulation promulgated under 
                this section shall be subject to the penalties, and 
                entitled to the privileges and immunities, provided in 
                the Federal Trade Commission Act (15 U.S.C. 41 et 
                seq.).
                    (C) Application to common carriers and nonprofit 
                organizations.--Notwithstanding section 4, 5(a)(2), or 
                6 of the Federal Trade Commission Act (15 U.S.C. 44, 
                45(a)(2), 46) or any jurisdictional limitation of the 
                Commission, the Commission shall also enforce this 
                section and the regulations promulgated under this 
                section, in the manner provided under this subsection, 
                with respect to--
                            (i) common carriers subject to the 
                        Communications Act of 1934 (47 U.S.C. 151 et 
                        seq.) and all Acts amendatory thereof and 
                        supplementary thereto; and
                            (ii) organizations not organized to carry 
                        on business for their own profit or that of 
                        their members.
            (3) Rulemaking.--The Commission may promulgate in 
        accordance with section 553 of title 5, United States Code, 
        such rules as may be necessary to carry out this section.
            (4) Effect on other laws.--Nothing in this section shall be 
        construed in any way to limit the authority of the Commission 
        under any other provision of law.

SEC. 4. PRICE GOUGING HOTLINE.

    The Commission shall establish a telephone hotline and an online 
mechanism to enable the public to report price gouging complaints, 
which shall be activated in anticipation of or during a natural 
disaster, pandemic, or state of emergency and shall remain operational 
until 120 days after the conclusion of such disaster, pandemic, or 
state of emergency.

SEC. 5. NO PREEMPTION OF STATE LAW.

    Nothing in this Act preempts any State law.
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