COVID–19 Price Gouging Prevention Act
Bill: H.R.675 | Sponsor: Rep. Schakowsky, Janice D. (D-IL)
Policy area: Commerce

Summary:
COVID–19 Price Gouging Prevention Act
This bill makes it unlawful for any person to sell or offer for sale a consumer good or service during a public health emergency resulting from COVID-19 (i.e., coronavirus disease 2019) at a price that (1) is unconscionably excessive, and (2) indicates that the seller is using the circumstances related to the public health emergency to increase prices unreasonably.
The bill provides authority for the Federal Trade Commission and state attorneys general to enforce the requirements of this bill.

To prohibit price gouging in connection with the public health 
       emergency resulting from COVID-19, 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 title may be cited as the ``COVID-19 Price Gouging Prevention 
Act''.

SEC. 2. PREVENTION OF PRICE GOUGING.

    (a) In General.--For the duration of a public health emergency 
declared pursuant to section 319 of the Public Health Service Act (42 
U.S.C. 247d) as a result of confirmed cases of 2019 novel coronavirus 
(COVID-19), including any renewal thereof, it shall be unlawful for any 
person to sell or offer for sale a good or service at a price that--
            (1) is unconscionably excessive; and
            (2) indicates the seller is using the circumstances related 
        to such public health emergency to increase prices 
        unreasonably.
    (b) Factors for Consideration.--In determining whether a person has 
violated subsection (a), there shall be taken into account, with 
respect to the price at which such person sold or offered for sale the 
good or service, factors that include the following:
            (1) Whether such price grossly exceeds the average price at 
        which the same or a similar good or service was sold or offered 
        for sale by such person--
                    (A) during the 90-day period immediately preceding 
                January 31, 2020; or
                    (B) during the period that is 45 days before or 
                after the date that is one year before the date such 
                good or service is sold or offered for sale under 
                subsection (a).
            (2) Whether such price grossly exceeds the average price at 
        which the same or a similar good or service was readily 
        obtainable from other similarly situated competing sellers 
        before January 31, 2020.
            (3) Whether such price reasonably reflects additional 
        costs, not within the control of such person, that were paid, 
        incurred, or reasonably anticipated by such person, or 
        reasonably reflects the profitability of forgone sales or 
        additional risks taken by such person, to produce, distribute, 
        obtain, or sell such good or service under the circumstances.
    (c) Enforcement.--
            (1) Enforcement by federal trade commission.--
                    (A) Unfair or deceptive acts or practices.--A 
                violation of subsection (a) shall be treated as a 
                violation of a regulation under section 18(a)(1)(B) of 
                the Federal Trade Commission Act (15 U.S.C. 
                57a(a)(1)(B)) regarding unfair or deceptive acts or 
                practices.
                    (B) Powers of commission.--The Commission shall 
                enforce subsection (a) 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. 
                Any person who violates such subsection shall be 
                subject to the penalties and entitled to the privileges 
                and immunities provided in the Federal Trade Commission 
                Act.
            (2) 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.
            (3) Enforcement by state attorneys general.--
                    (A) In general.--If the chief law enforcement 
                officer of a State, or an official or agency designated 
                by a State, has reason to believe that any person has 
                violated or is violating subsection (a), the attorney 
                general, official, or agency of the State, in addition 
                to any authority it may have to bring an action in 
                State court under its laws, may bring a civil action in 
                any appropriate United States district court or in any 
                other court of competent jurisdiction, including a 
                State court, to--
                            (i) enjoin further such violation by such 
                        person;
                            (ii) enforce compliance with such 
                        subsection;
                            (iii) obtain civil penalties; and
                            (iv) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State.
                    (B) Notice and intervention by the ftc.--The 
                attorney general of a State shall provide prior written 
                notice of any action under subparagraph (A) to the 
                Commission and provide the Commission with a copy of 
                the complaint in the action, except in any case in 
                which such prior notice is not feasible, in which case 
                the attorney general shall serve such notice 
                immediately upon instituting such action. The 
                Commission shall have the right--
                            (i) to intervene in the action;
                            (ii) upon so intervening, to be heard on 
                        all matters arising therein; and
                            (iii) to file petitions for appeal.
                    (C) Limitation on state action while federal action 
                is pending.--If the Commission has instituted a civil 
                action for violation of this section, no State attorney 
                general, or official or agency of a State, may bring an 
                action under this paragraph during the pendency of that 
                action against any defendant named in the complaint of 
                the Commission for any violation of this section 
                alleged in the complaint.
                    (D) Relationship with state-law claims.--If the 
                attorney general of a State has authority to bring an 
                action under State law directed at acts or practices 
                that also violate this section, the attorney general 
                may assert the State-law claim and a claim under this 
                section in the same civil action.
            (4) Savings clause.--Nothing in this section shall preempt 
        or otherwise affect any State or local law.
    (d) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Good or service.--The term ``good or service'' means a 
        good or service offered in commerce, including--
                    (A) food, beverages, water, ice, a chemical, or a 
                personal hygiene product;
                    (B) any personal protective equipment for 
                protection from or prevention of contagious diseases, 
                filtering facepiece respirators, medical equipment and 
                supplies (including medical testing supplies), a drug 
                as defined in section 201(g)(1) of the Federal Food, 
                Drug, and Cosmetic Act (21 U.S.C. 321(g)(1)), cleaning 
                supplies, disinfectants, sanitizers; or
                    (C) any healthcare service, cleaning service, or 
                delivery service.
            (3) State.--The term ``State'' means each of the several 
        States, the District of Columbia, each commonwealth, territory, 
        or possession of the United States, and each federally 
        recognized Indian Tribe.
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