II 109th CONGRESS 1st Session S. 1743 IN THE SENATE OF THE UNITED STATES September 21, 2005 Mr. Smith introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To authorize the Federal Trade Commission to investigate and assess penalties for price gouging with respect to oil and gas products.

1.

Short title

This Act may be cited as the Post-Disaster Consumer Protection Act of 2005.

2.

Price gouging prohibition following major disasters

(a)

Definitions

In this section: (1)

Affected area

The term affected area means an area affected by a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). (2)

Commission

The term Commission means the Federal Trade Commission. (3)

Oil or gas products

The term oil or gas products means oil, gasoline, diesel, aviation fuel, natural gas, or home heating oil. (4)

Price gouging

The term price gouging means the charging of an unconscionably excessive price by a supplier of an oil or gas product. (5)

Supplier

The term supplier includes a seller, reseller, wholesaler, or distributor of an oil or gas product. (6)

Unconscionably excessive price

The term unconscionably excessive price means a price charged— (A)(i)for an oil or gas product sold in an affected area that represents a gross disparity, as determined by the Commission, between the price charged by a supplier for that product after a major disaster is declared and the average price charged for that product by that supplier in the affected area during the 30-day period immediately before the President declares the existence of the major disaster; or (ii)for an oil or gas product produced in the affected area for sale in interstate commerce that represents a gross disparity, as determined by the Commission, between the price charged by a supplier for that product after a major disaster is declared and the average price charged for that product by that supplier during the 30-day period immediately before the President declares the existence of the major disaster; (B)that is not attributable to increased wholesale or operational costs incurred by the supplier in connection with the provision of the oil or gas product or to international market trends; and (C)that is not attributable to a loss of production or loss of pipeline transmission capability. (b)

Price gouging involving disaster victims

(1)

Offense

During the 30-day period following the date on which a major disaster is declared by the President, it shall be unlawful for a supplier to sell, or to offer to sell, any oil or gas product at an unconscionably excessive price as described in subsection (a)(6). (c)

Unfair or deceptive act or practice

(1)

In general

The provisions of this Act shall be enforced by the Commission under the Federal Trade Commission Act (15 U.S.C. 41 et seq.). A violation of any provision of this Act shall be treated as an unfair or deceptive act or practice violating a rule promulgated under section 18 of the Federal Trade Commission Act (15 U.S.C. 57a). (2)

Actions by the commission

The Commission may prevent any person from violating this Act 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 Act. Any entity that violates any provision of this Act is subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act in the same manner, by the same means, and with the same jurisdiction, power, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act. (d)

Effect on other laws

Nothing contained in this Act shall be construed to limit the authority of the Commission under any other provision of law.