[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3853 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3853

  To prevent price gouging during emergencies, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 1, 2020

Ms. Warren (for herself and Ms. Harris) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 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) 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, state of emergency, or public 
        health 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 period and in a covered 
geographical area, it shall be unlawful for a seller to sell or offer 
for sale a consumer good at an excessive or opportunistic price.
    (b) Presumption of Excessive or Opportunistic Price.--
            (1) In general.--A seller shall be presumed to be in 
        violation of subsection (a) if, during an emergency period and 
        in a covered geographical area, the seller sells or offers for 
        sale a consumer good at a price that exceeds by more than 10 
        percent either--
                    (A) the average price at which the consumer good 
                was sold or offered for sale by all sellers in such 
                area during the 120-day period preceding such emergency 
                period; or
                    (B) the average price at which the consumer good 
                was sold or offered for sale by the seller involved 
                during the 120-day period preceding such emergency 
                period.
            (2) Rebuttal.--A seller may rebut a presumption under 
        paragraph (1) if the seller demonstrates by clear and 
        convincing evidence that the increase in price of the consumer 
        good involved is directly attributable to additional costs paid 
        by the seller in procuring, acquiring, or providing the 
        consumer during the emergency period.
    (c) Enforcement.--
            (1) Enforcement by federal trade commission.--
                    (A) Unfair or deceptive acts or practices.--A 
                violation of this section 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 this section 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 
                person who violates such section 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 of law or to limit the application of 
        any other Federal or State law.
            (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 this section, 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 State 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 such section;
                            (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 
                subparagraph 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.--With respect to an 
                action described in subparagraph (A), 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) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Consumer good.--The term ``consumer good'' a good 
        offered in commerce, including--
                    (A) food, water, ice, flashlights, radios, 
                batteries, candles, blankets, soaps, diapers, 
                toiletries, gasoline, generator, 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 disaster or emergency 
                described in paragraph (3)(A).
            (3) Emergency period; covered geographical area.--
                    (A) In general.--Subject to subparagraph (B), an 
                ``emergency period'' is the period during which, and a 
                ``covered geographical area'' is a geographical area in 
                which, there exists--
                            (i) a major disaster declared by the 
                        President under section 401 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5170); or
                            (ii) a public health emergency declared by 
                        the Secretary pursuant to section 319 of the 
                        Public Health Service Act (42 U.S.C. 247d).
                    (B) Rule of application.--For purposes of 
                subparagraph (A)--
                            (i) an ``emergency period'' with respect to 
                        a disaster or emergency declaration described 
                        in such subparagraph shall include the 30-day 
                        period following the last day that such 
                        disaster or emergency declaration is in effect; 
                        and
                            (ii) a geographical area in which there 
                        exists a disaster or emergency described in 
                        subparagraph (A) shall be considered to be a 
                        ``covered geographical area'' through the end 
                        of the period described in clause (i).
            (4) Seller.--The term ``seller'' means, with respect to a 
        consumer good, any person selling or offering for sale such 
        consumer good.
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