[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6450 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6450
To prevent price gouging during emergencies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2020
Mr. Neguse introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To prevent price gouging during emergencies, 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 ``Price Gouging Prevention Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) During a national emergency, state of emergency, or
public health emergency, some merchants have taken unfair
advantage of consumers by greatly increasing prices for
essential consumer goods.
(2) While the pricing of consumer goods and other supplies
is generally best left to the marketplace under ordinary
conditions, when a declared national emergency or state of
emergency results in abnormal disruptions of the market, the
public interest requires that excessive and unjustified
increases in the prices of essential consumer goods be
prohibited.
(3) To protect citizens from excessive and unjustified
increases in the prices charged during or shortly after a
declared national emergency or state of emergency for consumer
goods and supplies that are vital and necessary for the health,
safety, and welfare of consumers is of utmost concern and
importance.
SEC. 3. PREVENTION OF PRICE GOUGING DURING EMERGENCIES.
(a) In General.--During an emergency declaration, including a
renewal thereof, and for a period of 30 days after such emergency
period ends, it shall be unlawful, in the region or State affected by
the emergency declaration, for any seller to sell or offer to sell any
consumer good for a price that is more than 10 percent greater than the
price charged by similarly situated sellers for those consumer goods
during the 120-day period before the date of the declaration of the
emergency.
(b) Factors for Consideration.--In determining whether a seller has
violated subsection (a), there shall be taken into account, with
respect to the price at which such seller sold or offered for sale the
consumer good, factors that include--
(1) whether such increase in price was directly
attributable to additional costs of the consumer goods, or
directly attributable to additional costs for labor or
materials used to provide the consumer goods during the
emergency declaration; and
(2) whether such price is not more than 10 percent greater
than the total of the cost to the seller plus the markup
customarily applied by the seller for that consumer good in the
usual course of business before the onset of the public health
emergency.
(c) Enforcement.--
(1) Enforcement by federal trade commission.--
(A) Unfair or deceptive acts or practices.--A
violation of subsection (a) shall be treated as a
violation of a regulation under section 18(a)(1)(B) of
the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)) regarding unfair or deceptive acts or
practices.
(B) Powers of commission.--The Commission shall
enforce subsection (a) 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.
Any person who violates such subsection shall be
subject to the penalties and entitled to the privileges
and immunities provided in the Federal Trade Commission
Act.
(2) 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.
(3) Enforcement by state attorneys general.--
(A) In general.--If the attorney general of a
State, or another official or agency designated by a
State, has reason to believe that any person has
violated or is violating subsection (a), the attorney
general, official, or agency of the State, in addition
to any authority it may have to bring an action in
State court under its consumer protection law, may
bring a civil action in any appropriate United States
district court or in any other court of competent
jurisdiction, including a State court, to--
(i) enjoin further such violation by such
person;
(ii) enforce compliance with subsection
(a);
(iii) obtain civil penalties; and
(iv) obtain damages, restitution, or other
compensation on behalf of residents of the
State.
(B) Notice.--Before filing an action under
subparagraph (A), the attorney general, official, or
agency of the State involved shall provide to the
Commission a written notice of such action and a copy
of the complaint for such action. If the attorney
general, official, or agency determines that it is not
feasible to provide the notice described in this
subsection before the filing of the action, the
attorney general, official, or agency shall provide
written notice of the action and a copy of the
complaint to the Commission immediately upon the filing
of the action.
(C) Authority of commission.--On receiving notice
under subparagraph (B) of an action under this section,
the Commission shall have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on
all matters arising therein; and
(iii) to file petitions for appeal.
(D) Limitation on state action while federal action
is pending.--If the Commission has instituted a civil
action for violation of this section, no State attorney
general, or official or agency of a State, may bring an
action under this paragraph during the pendency of that
action against any defendant named in the complaint of
the Commission for any violation of this section
alleged in the complaint.
(d) Definitions.--For purposes of this section, the following
definitions apply:
(1) Consumer good.--The term ``consumer good'' means a good
offered in commerce, including--
(A) food, water, ice, flashlights, radios,
batteries, candles, blankets, soaps, diapers,
toiletries, gasoline, generators, temporary shelters,
plywood, nails, hammers;
(B) prescription and nonprescription medications,
bandages, gauze, isopropyl alcohol, any personal
protective equipment for protection from or prevention
of a contagious disease, antibacterial materials; or
(C) goods vital and necessary for the health,
safety, welfare of consumers deemed necessary by public
health officials during a declared public health
emergency.
(2) Emergency declaration.--The term ``emergency
declaration'' means--
(A) a public health emergency declared pursuant to
section 319 of the Public Health Service Act (42 U.S.C.
247d); and
(B) a declaration of emergency declared pursuant to
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 note).
(3) Seller.--The term ``seller'' means any person selling
or offering for sale any consumer good, as defined in such
section.
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