II 110th CONGRESS 1st Session S. 1520 IN THE SENATE OF THE UNITED STATES May 24, 2007 Mr. Nelson of Florida introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To prohibit price gouging relating to gasoline and diesel fuels in areas affected by major disasters.

1.

Short title

This Act may be cited as the Price Gouging Act of 2007.

2.

Fuel price gouging prohibition following major disasters

(a)

In general

The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by inserting after section 24 (15 U.S.C. 57b–5) the following:

24A.

Protection from fuel price gouging 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 Federal law in effect on the date of the enactment of this section. (2)

Price gouging

The term price gouging means the charging of an unconscionably excessive price by a supplier in an affected area. (3)

Supplier

The term supplier means any person that sells gasoline or diesel fuel for resale or ultimate consumption. (4)

Unconscionably excessive price

The term unconscionably excessive price means a price charged in an affected area for gasoline or diesel fuel that— (A)represents a gross disparity, as determined by the Commission in accordance with subsection (e), between the price charged for gasoline or diesel fuel and the average price of gasoline or diesel fuel charged by suppliers in the affected area during the 30-day period ending on the date the President declares the existence of a major disaster; and (B)is not attributable to increased wholesale or operational costs incurred by the supplier in connection with the sale of gasoline or diesel fuel. (b)

Determination of the Commission

As soon as practicable after the President declares a major disaster, the Commission shall— (1)consult with the Attorney General, the United States Attorney for the district in which the disaster occurred, and State and local law enforcement officials to determine whether any supplier in the affected area is charging or has charged an unconscionably excessive price for gasoline or diesel fuel provided in the affected area; and (2)establish within the Commission— (A)a toll-free hotline that a consumer may call to report an incidence of price gouging in the affected area; and (B)a program to develop and distribute to the public informational materials in English and Spanish to consumers in the affected area on detecting and avoiding price gouging. (c)

Price gouging involving disaster victims

(1)

Offense

During the 180-day period beginning on the date on which a major disaster is declared by the President, it shall be unlawful for a supplier to sell, or offer to sell, gasoline or diesel fuel in an affected area at an unconscionably excessive price. (2)

Action by Commission

(A)

In general

During the period described in paragraph (1), the Commission shall conduct investigations of complaints by consumers of price gouging by suppliers in an affected area. (B)

Positive determination

If the Commission determines under subparagraph (A) that a supplier is in violation of paragraph (1), the Commission shall take any action the Commission determines to be appropriate to remedy the violation. (3)

Civil penalties

A supplier who commits a violation described in paragraph (1) may, in a civil action brought in a court of competent jurisdiction, be subject to— (A)a civil penalty of not more than $500,000; (B)an order to pay special and punitive damages; (C)an order to pay reasonable attorney's fees; (D)an order to pay costs of litigation relating to the offense; (E)an order for disgorgement of profits earned as a result of a violation of paragraph (1); and (F)any other relief determined by the court to be appropriate. (4)

Criminal penalty

A supplier that knowingly commits a violation described in paragraph (1) shall be imprisoned not more than 1 year. (5)

Action by victims

A person, Federal agency, State, or local government that suffers loss or damage as a result of a violation of paragraph (1) may bring a civil action against a supplier in any court of competent jurisdiction for disgorgement, special or punitive damages, injunctive relief, reasonable attorney's fees, costs of the litigation, and any other appropriate legal or equitable relief. (6)

Action by State attorneys general

An attorney general of a State, or other authorized State official, may bring a civil action in the name of the State, on behalf of persons residing in the State, in any court of competent jurisdiction for disgorgement, special or punitive damages, reasonable attorney's fees, costs of litigation, and any other appropriate legal or equitable relief. (7)

No preemption

Nothing in this section preempts any State law. (d)

Report

Not later than 1 year after the date of the enactment of this section, and annually thereafter, the Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives a report describing the following: (1)The number of price gouging complaints received by the Commission for each major disaster declared by the President during the preceding year. (2)The number of price gouging investigations of the Commission initiated, in progress, and completed as of the date on which the report is prepared. (3)The number of enforcement actions of the Commission initiated, in progress, and completed as of the date on which the report is prepared. (4)An evaluation of the effectiveness of the toll-free hotline and program established under subsection (b)(2). (5)Recommendations for any additional action with respect to the implementation or effectiveness of this section. (e)

Definition of gross disparity

Not later than 180 days after the date of the enactment of this subsection, the Commission shall promulgate regulations to define the term gross disparity for purposes of this section.

. (b)

Effect of section

Nothing in this section, or the amendment made by this section, affects the authority of the Federal Trade Commission in effect on the date of the enactment of this Act with respect to price gouging.