[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3574 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3574

      To protect consumers from price-gouging during emergencies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 2020

  Mr. Tillis introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
      To protect consumers from price-gouging during emergencies.

    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 ``Ending Price-Gouging During 
Emergencies Act''.

SEC. 2. PROHIBITION OF UNCONSCIONABLY EXCESSIVE PRICING OF NECESSARY 
              GOODS AND SERVICES DURING EMERGENCIES.

    (a) Unconscionable Pricing.--
            (1) In general.--It shall be unlawful for any person to 
        sell, at wholesale or at retail in an emergency area and during 
        an emergency period, any good or service covered by a 
        proclamation issued by the Administrator of the Federal 
        Emergency Management Agency (in this section referred to as the 
        ``Administrator'') under paragraph (2) at a price that--
                    (A) is unconscionably excessive; and
                    (B) indicates the seller is taking unfair advantage 
                of the circumstances related to the emergency to 
                increase prices unreasonably.
            (2) Necessary goods and services proclamation.--
                    (A) In general.--The Administrator may issue a 
                proclamation with respect to an emergency area during 
                an emergency period to designate the goods and services 
                to which the prohibition described in paragraph (1) 
                shall apply.
                    (B) Content of proclamation.--A proclamation issued 
                under this paragraph shall include the following:
                            (i) The geographic area covered by the 
                        proclamation.
                            (ii) The time period that such proclamation 
                        shall be in effect.
                            (iii) The specific goods and services or 
                        categories of goods and services that are 
                        subject to the prohibition described in 
                        paragraph (1).
                    (C) Duration.--The proclamation may not apply for a 
                period of more than 30 consecutive days, but may be 
                renewed for such consecutive periods, each not to 
                exceed 30 days, as the Administrator determines 
                appropriate.
                    (D) Authority to issue multiple proclamations.--The 
                Administrator may issue multiple proclamations under 
                this paragraph with respect to an emergency area and an 
                emergency period, as necessary.
            (3) Factors considered.--In determining whether a person 
        has violated paragraph (1), there shall be taken into account, 
        among other factors--
                    (A) whether the amount charged by such person for 
                the applicable good or service at a particular location 
                in an area covered by a proclamation issued under 
                paragraph (2) during the period such proclamation is in 
                effect--
                            (i) grossly exceeds the average price at 
                        which the applicable good or service was 
                        offered for sale by that person during the 30 
                        days prior to such proclamation;
                            (ii) grossly exceeds the price at which the 
                        same or similar good or service was readily 
                        obtainable in the same area from other 
                        competing sellers during the same period;
                            (iii) reasonably reflected additional 
                        costs, not within the control of that person, 
                        that were paid, incurred, or reasonably 
                        anticipated by that person, or reflected 
                        additional risks taken by that person to 
                        produce, distribute, obtain, or sell such good 
                        or service under the circumstances; and
                            (iv) was substantially attributable to 
                        local, regional, national, or international 
                        market conditions; and
                    (B) whether the quantity of the good or service the 
                person produced, distributed, or sold in an area 
                covered by a proclamation issued under paragraph (2) 
                during a 30-day period following the issuance of such 
                proclamation increased over the quantity that such 
                person produced, distributed, or sold during the 30 
                days prior to such proclamation, taking into account 
                usual seasonal demand variations.
    (b) Definition of Emergency Area and Period.--In this section, an 
``emergency area'' is a geographical area in which, and an ``emergency 
period'' is the period during which, there exists an emergency or 
disaster declared by the President pursuant to the National Emergencies 
Act or the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act.
    (c) Effective Date.--This section shall take effect on the date of 
enactment of this Act and shall apply to any emergency or disaster 
declaration described in subsection (b) that is in effect on such date 
or made on or after such date.

SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Enforcement by FTC.--A violation of section 2 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)). The Federal Trade Commission 
shall enforce this Act in the same manner, by the same means, and with 
the same jurisdiction as though all applicable terms and provisions of 
the Federal Trade Commission Act were incorporated into and made a part 
of this Act. In enforcing section 2 of this Act, the Commission shall 
give priority to enforcement actions involving instances of a good or 
service being sold at an unconscionably excessive price during an 
emergency period with the highest percentage increase in price over the 
price for such good or service as of the second week preceding such 
period.
    (b) Civil Penalties.--
            (1) In general.--Notwithstanding the penalties set forth 
        under the Federal Trade Commission Act, any person who violates 
        section 2 with actual knowledge or knowledge fairly implied on 
        the basis of objective circumstances shall be subject to--
                    (A) a civil penalty of not more than 10 times the 
                amount of profits gained by such person through such 
                violation; or
                    (B) a civil penalty of not more than $100,000,000.
            (2) Method.--The penalties provided by paragraph (1) shall 
        be obtained in the same manner as civil penalties obtained 
        under section 5 of the Federal Trade Commission Act (15 U.S.C. 
        45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) each day of a continuing violation shall be 
                considered a separate violation; and
                    (B) the court shall take into consideration, among 
                other factors, the seriousness of the violation and the 
                efforts of the person committing the violation to 
                remedy the harm caused by the violation in a timely 
                manner.

SEC. 4. CRIMINAL PENALTIES.

    (a) In General.--In addition to any penalty applicable under 
section 3, any person who violates section 2 shall be fined under title 
18, United States Code, in an amount not to exceed $500,000,000.
    (b) Enforcement.--The criminal penalty provided by subsection (a) 
may be imposed only pursuant to a criminal action brought by the 
Attorney General or other officer of the Department of Justice. The 
Attorney General shall give priority to enforcement actions involving 
instances of a good or service being sold at an unconscionably 
excessive price during an emergency period with the highest percentage 
increase in price over the price for such good or service as of the 
second week preceding such period.

SEC. 5. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of section 2 of this Act, 
or to impose the civil penalties authorized by section 3(b)(1)(B), 
whenever the attorney general of the State has reason to believe that 
the interests of the residents of the State have been or are being 
threatened or adversely affected by a violation of this Act or a 
regulation under this Act, involving a retail sale.
    (b) Notice.--The State shall serve written notice to the Federal 
Trade Commission of any civil action under subsection (a) prior to 
initiating such civil action. The notice shall include a copy of the 
complaint to be filed to initiate such civil action, except that if it 
is not feasible for the State to provide such prior notice, the State 
shall provide such notice immediately upon instituting such civil 
action.
    (c) Authority To Intervene.--Upon receiving the notice required by 
subsection (b), the Federal Trade Commission may intervene in such 
civil action and upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    (e) Venue; Service of Process.--In a civil action brought under 
subsection (a)--
            (1) the venue shall be a judicial district in which--
                    (A) the defendant operates;
                    (B) the defendant was authorized to do business; or
                    (C) the defendant in the civil action is found;
            (2) process may be served without regard to the territorial 
        limits of the district or of the State in which the civil 
        action is instituted; and
            (3) a person who participated with the defendant in an 
        alleged violation that is being litigated in the civil action 
        may be joined in the civil action without regard to the 
        residence of the person.
    (f) Limitation on State Action While Federal Action Is Pending.--If 
the Federal Trade Commission has instituted a civil action or an 
administrative action for violation of this Act, no State attorney 
general, or official or agency of a State, may bring an action under 
this subsection during the pendency of that action against any 
defendant named in the complaint of the Federal Trade Commission or the 
other agency for any violation of this Act alleged in the complaint.
    (g) Enforcement of State Law.--Nothing contained in this section 
shall prohibit an authorized State official from proceeding in State 
court to enforce a civil or criminal statute of such State.

SEC. 6. EFFECT ON OTHER LAWS.

    (a) Other Authority of Federal Trade Commission.--Nothing in this 
Act shall be construed to limit or affect in any way the Federal Trade 
Commission's authority to bring enforcement actions or take any other 
measure under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) 
or any other provision of law.
    (b) State Law.--Nothing in this Act preempts any State law.
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