[Congressional Record Volume 151, Number 119 (Wednesday, September 21, 2005)]
[Senate]
[Pages S10299-S10300]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH:
  S. 1743. A bill to authorize the Federal Trade Commission to 
investigate and assess penalties for price gouging with respect to oil 
and gas products; to

[[Page S10300]]

the Committee on Commerce, Science, and Transportation.
  Mr. SMITH. Mr. President, I rise today to introduce the Post-Disaster 
Consumer Protection Act of 2005. This bill is designed to prohibit 
price gouging of oil or gas products in the immediate aftermath of a 
declared disaster.
  Hurricane Katrina had a devastating affect on the major oil and 
natural gas producing region of our Nation. This natural disaster has 
exposed our Nation's vulnerability to even short-term disruptions 
anywhere in the supply chain. Oil production curtailments, refinery 
shutdowns or pipeline disruptions can all cause price spikes in 
gasoline, diesel and aviation fuel.
  Directly following Hurricane Katrina, extreme price volatility of 
gasoline throughout the United States led to accusations of price 
gouging. Reports were made of individual retailers charging as much as 
$5.87 a gallon for gas. Even in my State of Oregon, which is less 
reliant on Gulf of Mexico production, prices spiked in the immediate 
aftermath of the hurricane.
  This bill declares that for the 30 days following the President's 
declaration of a disaster, it will be unlawful to engage in price 
gouging of oil or gas products for sale in the affected area, or of oil 
and gas products produced in the affected area for sale in interstate 
commerce.
  In addition, this bill authorizes the Federal Trade Commission to 
determine what represents a gross disparity in pricing and to prevent 
violations under this act using its authorities under the Federal Trade 
Commission Act. Those authorities include seeking civil penalties of 
$11,000 per violation; assessing fines or repayment of illegal gains; 
freezing assets; and seeking preliminary injunctions, cease and desist 
orders or temporary restraining orders.
  Drastic increases in oil and gas products have a negative impact on 
consumers and businesses. That is why we must have a system in place 
that discourages price gouging in the wake of a disaster, and allows 
enough time for markets to return to normal.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1743

       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 ``Post-Disaster Consumer 
     Protection Act of 2005''.

     SEC. 2. PRICE GOUGING PROHIBITION 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 the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Oil or gas products.--The term ``oil or gas products'' 
     means oil, gasoline, diesel, aviation fuel, natural gas, or 
     home heating oil.
       (4) Price gouging.--The term ``price gouging'' means the 
     charging of an unconscionably excessive price by a supplier 
     of an oil or gas product.
       (5) Supplier.--The term ``supplier'' includes a seller, 
     reseller, wholesaler, or distributor of an oil or gas 
     product.
       (6) Unconscionably excessive price.--The term 
     ``unconscionably excessive price'' means a price charged--
       (A)(i) for an oil or gas product sold in an affected area 
     that represents a gross disparity, as determined by the 
     Commission, between the price charged by a supplier for that 
     product after a major disaster is declared and the average 
     price charged for that product by that supplier in the 
     affected area during the 30-day period immediately before the 
     President declares the existence of the major disaster; or
       (ii) for an oil or gas product produced in the affected 
     area for sale in interstate commerce that represents a gross 
     disparity, as determined by the Commission, between the price 
     charged by a supplier for that product after a major disaster 
     is declared and the average price charged for that product by 
     that supplier during the 30-day period immediately before the 
     President declares the existence of the major disaster;
       (B) that is not attributable to increased wholesale or 
     operational costs incurred by the supplier in connection with 
     the provision of the oil or gas product or to international 
     market trends; and
       (C) that is not attributable to a loss of production or 
     loss of pipeline transmission capability.
       (b) Price Gouging Involving Disaster Victims.--
       (1) Offense.--During the 30-day period following the date 
     on which a major disaster is declared by the President, it 
     shall be unlawful for a supplier to sell, or to offer to 
     sell, any oil or gas product at an unconscionably excessive 
     price as described in subsection (a)(6).
       (c) Unfair or Deceptive Act or Practice.--
       (1) In general.--The provisions of this Act shall be 
     enforced by the Commission under the Federal Trade Commission 
     Act (15 U.S.C. 41 et seq.). A violation of any provision of 
     this Act shall be treated as an unfair or deceptive act or 
     practice violating a rule promulgated under section 18 of the 
     Federal Trade Commission Act (15 U.S.C. 57a).
       (2) Actions by the commission.--The Commission may prevent 
     any person from violating this Act 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 entity 
     that violates any provision of this Act is subject to the 
     penalties and entitled to the privileges and immunities 
     provided in the Federal Trade Commission Act in the same 
     manner, by the same means, and with the same jurisdiction, 
     power, and duties as though all applicable terms and 
     provisions of the Federal Trade Commission Act were 
     incorporated into and made a part of this Act.
       (d) Effect on Other Laws.--Nothing contained in this Act 
     shall be construed to limit the authority of the Commission 
     under any other provision of law.
                                 ______