[Congressional Record (Bound Edition), Volume 149 (2003), Part 17]
[Extensions of Remarks]
[Page 24142]
[From the U.S. Government Publishing Office, www.gpo.gov]




    PREVENT PRICE GOUGING DURING A DISASTER--SUPPORT THE P.I.G. ACT

                                 ______
                                 

                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                       Thursday, October 2, 2003

  Mr. KLECZKA. Mr. Speaker, as we have just seen following Hurricane 
Isabel, some vendors charged residents exorbitant rates for essential 
goods and services following the storm. A recent Washington Post 
article reports that in one instance, a tree-cutting firm wanted 
$17,000 to remove five trees that had already fallen to the ground. The 
same article refers to gasoline being sold for over $3 a gallon and 
bottles of water sold for $5 apiece.
  While most merchants are honorable and help their neighbors by 
providing at a reasonable cost the products or services during a 
crisis, others seek to take advantage of these people in their time of 
need. Today I am introducing the Permanently Inhibit Gougers (P.I.G.) 
Act that would prohibit vendors from increasing prices on goods and 
services widely needed during a declared disaster.
  Specifically, prices could not be increased by more than 10 percent 
in excess of the average price of a product over the last 90 days. This 
restriction would apply for the seven days before a foreseeable event 
and for the 90 days following a disaster. Increases in excess of 10% 
would be branded an unfair or deceptive business practice under the 
Federal Trade Commission Act. Reasonable exceptions would be made for 
vendors allowing them to raise their prices proportionally when their 
cost of doing business or acquiring wholesale goods increases during a 
crisis.
  Additionally, violators would be subject to a civil penalty of up to 
$250,000. People who are the victims of price gouging would be able to 
sue the purveyor for damages up to three times the amount they 
overpaid.
  Congress must act to prevent unscrupulous vendors from taking 
advantage of consumers during an emergency. We need to make it clear 
that such despicable behavior, which is as shameless as looting, will 
be punished severely in order to ensure that our constituents are not 
gouged at the worst possible time. I urge my colleagues to send gougers 
a strong message by signing on as cosponsors of this legislation.

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