1.This Act may be cited as the
Price Gouging Act of
2010
.
2.Fuel price gouging prohibition following
major disasters
(a)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)In this section:
(1)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)The term price gouging means
the charging of an unconscionably excessive price by a supplier in an affected
area.
(3)The term supplier means any
person that sells gasoline or diesel fuel for resale or ultimate
consumption.
(4)Unconscionably excessive
priceThe 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
CommissionAs 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)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)
(A)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)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)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)A supplier that knowingly commits a
violation described in paragraph (1) shall be imprisoned not more than 1
year.
(5)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
generalAn 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)Nothing in this section preempts any State
law.
(d)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 disparityNot 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)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.