Title: Price Gouging Prevention Act
Policy area: Commerce

Summary:
Price Gouging Prevention Act
This bill makes it unlawful for any person to sell, or offer for sale, a consumer good during a federally-declared emergency at a price that (1) exceeds 10% of the price charged by similarly-situated sellers of such good during the 120 days before the emergency was declared. However, such a price increase may not be a violation if the increase is (1) attributable to additional costs incurred by the seller to provide the consumer good, or (2) is not more than 10% greater than a combination of the total cost incurred by the seller and the customary price markup of the good.  The bill grants the Federal Trade Commission and state attorneys general the authority to enforce compliance with the requirements of this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6450 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6450

  To prevent price gouging during emergencies, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2020

  Mr. Neguse introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To prevent price gouging during emergencies, 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 ``Price Gouging Prevention Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) During a national emergency, state of emergency, or 
        public health emergency, some merchants have taken unfair 
        advantage of consumers by greatly increasing prices for 
        essential consumer goods.
            (2) While the pricing of consumer goods and other supplies 
        is generally best left to the marketplace under ordinary 
        conditions, when a declared national emergency or state of 
        emergency results in abnormal disruptions of the market, the 
        public interest requires that excessive and unjustified 
        increases in the prices of essential consumer goods be 
        prohibited.
            (3) To protect citizens from excessive and unjustified 
        increases in the prices charged during or shortly after a 
        declared national emergency or state of emergency for consumer 
        goods and supplies that are vital and necessary for the health, 
        safety, and welfare of consumers is of utmost concern and 
        importance.

SEC. 3. PREVENTION OF PRICE GOUGING DURING EMERGENCIES.

    (a) In General.--During an emergency declaration, including a 
renewal thereof, and for a period of 30 days after such emergency 
period ends, it shall be unlawful, in the region or State affected by 
the emergency declaration, for any seller to sell or offer to sell any 
consumer good for a price that is more than 10 percent greater than the 
price charged by similarly situated sellers for those consumer goods 
during the 120-day period before the date of the declaration of the 
emergency.
    (b) Factors for Consideration.--In determining whether a seller has 
violated subsection (a), there shall be taken into account, with 
respect to the price at which such seller sold or offered for sale the 
consumer good, factors that include--
            (1) whether such increase in price was directly 
        attributable to additional costs of the consumer goods, or 
        directly attributable to additional costs for labor or 
        materials used to provide the consumer goods during the 
        emergency declaration; and
            (2) whether such price is not more than 10 percent greater 
        than the total of the cost to the seller plus the markup 
        customarily applied by the seller for that consumer good in the 
        usual course of business before the onset of the public health 
        emergency.
    (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.
            (3) Enforcement by state attorneys general.--
                    (A) In general.--If the attorney general of a 
                State, or another 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 consumer protection law, 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 subsection 
                        (a);
                            (iii) obtain civil penalties; and
                            (iv) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State.
                    (B) Notice.--Before filing an action under 
                subparagraph (A), the attorney general, official, or 
                agency of the State involved shall provide to the 
                Commission a written notice of such action and a copy 
                of the complaint for such action. If the attorney 
                general, official, or agency determines that it is not 
                feasible to provide the notice described in this 
                subsection before the filing of the action, the 
                attorney general, official, or agency shall provide 
                written notice of the action and a copy of the 
                complaint to the Commission immediately upon the filing 
                of the action.
                    (C) Authority of commission.--On receiving notice 
                under subparagraph (B) of an action under this section, 
                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.
                    (D) 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) Definitions.--For purposes of this section, the following 
definitions apply:
            (1) Consumer good.--The term ``consumer good'' means a good 
        offered in commerce, including--
                    (A) food, water, ice, flashlights, radios, 
                batteries, candles, blankets, soaps, diapers, 
                toiletries, gasoline, generators, temporary shelters, 
                plywood, nails, hammers;
                    (B) prescription and nonprescription medications, 
                bandages, gauze, isopropyl alcohol, any personal 
                protective equipment for protection from or prevention 
                of a contagious disease, antibacterial materials; or
                    (C) goods vital and necessary for the health, 
                safety, welfare of consumers deemed necessary by public 
                health officials during a declared public health 
                emergency.
            (2) Emergency declaration.--The term ``emergency 
        declaration'' means--
                    (A) a public health emergency declared pursuant to 
                section 319 of the Public Health Service Act (42 U.S.C. 
                247d); and
                    (B) a declaration of emergency declared pursuant to 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 note).
            (3) Seller.--The term ``seller'' means any person selling 
        or offering for sale any consumer good, as defined in such 
        section.
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