Title: Preventing Pandemic Profiting Act
Policy area: Crime and Law Enforcement

Summary:
Preventing Pandemic Profiting Act
This bill creates a new criminal offense for price gouging during a state of emergency.
Specifically, in a location that has received a state of emergency declaration, the bill prohibits the sale of certain goods or services—those vital and necessary for consumer health, safety, and welfare—at an unconscionably excessive price (e.g., a price higher than the average price during the 30-day period before the emergency declaration was made).
A violator is subject to fine, a prison term of up to five years, or both.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6264 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6264

To prohibit price gouging during a state of emergency declaration, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2020

 Mr. Smith of Missouri (for himself and Mr. Gottheimer) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To prohibit price gouging during a state of emergency declaration, 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 ``Preventing Pandemic Profiting Act''.

SEC. 2. PROHIBITION.

    (a) In General.--Chapter 11 of title 18, United States Code, is 
amended by inserting after section 220 the following:
``Sec. 221. Price gouging during a state of emergency declaration
    ``(a) In General.--Whoever, in any location that has received a 
state of emergency declaration, knowingly sells or offers for sale, 
during the effective period of such declaration, any goods or services 
identified by the Secretary of Health and Human Services as vital and 
necessary for the health, safety, and welfare of consumers, including 
medical treatment, at an unconscionably excessive price, shall be fined 
not more than $1,000, imprisoned not more than 5 years, or both.
    ``(b) Definitions.--In this section:
            ``(1) State of emergency declaration.--The term `state of 
        emergency declaration' means--
                    ``(A) a public health emergency declaration under 
                section 319 of the Public Health Service Act;
                    ``(B) a major disaster declaration under section 
                401 of the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act; or
                    ``(C) an emergency declaration under section 501 of 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act.
            ``(2) Unconscionably excessive price.--The term 
        `unconscionably excessive price'--
                    ``(A) means a price higher than the average price 
                at which goods or services were sold or offered for 
                sale during the 30-day period prior to the date on 
                which a state of emergency declaration is made; and
                    ``(B) does not include--
                            ``(i) an increased price that reflects the 
                        average profit margin during the 30-day period 
                        prior to the date on which a state of emergency 
                        declaration is made, plus an increase in the 
                        cost of services or the cost of acquiring, 
                        producing, selling, transporting, and 
                        delivering goods; or
                            ``(ii) any price agreed to by a seller and 
                        consumer prior to the date on which a state of 
                        emergency declaration is made.''.
    (b) Clerical Amendment.--The table of sections for chapter 11 of 
title 18, United States Code, is amended by inserting after the item 
related to section 220 the following:

``221. Price gouging during a state of emergency declaration.''.
    (c) Application.--This Act and the amendments made by this Act 
shall apply with respect to conduct occurring on or after the date of 
enactment of this Act.
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