Disaster and Emergency Pricing Abuse Prevention Act

Bill: 117-s-3839
Sponsor: full_name: Sen. Klobuchar, Amy [D-MN]
Introduced: 2022-03-15
Policy area: Commerce
Subjects: Consumer affairs

Disaster relief and insurance

Emergency medical services and trauma care

Government information and archives

Infectious and parasitic diseases

Inflation and prices

Natural disasters

Telephone and wireless communication
Latest action: action_date: 2022-03-15
text: Read twice and referred to the Committee on Commerce, Science, and Transportation.

Summaries:
action_date: 2022-03-15
action_desc: Introduced in Senate
text: <p><b>Disaster and Emergency Pricing Abuse Prevention Act</b></p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 3839 IN THE SENATE OF THE UNITED STATES March 15, 2022 Ms. Klobuchar (for herself, Mr. Blumenthal , Ms. Cortez Masto , and Ms. Hirono ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL 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 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. 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. 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. 5. No preemption of State law Nothing in this Act preempts any State law.