[Congressional Record (Bound Edition), Volume 151 (2005), Part 15]
[House]
[Pages 20862-20863]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  FREE ACT TO RESPOND TO PRICE GOUGING

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Michigan (Mr. Stupak) is recognized for 5 minutes.
  Mr. STUPAK. Mr. Speaker, in the wake of Hurricane Katrina, Americans 
are pulling together, donating to relief organizations and giving their 
time to help the people of the gulf coast recover. That is how American 
people react when they see their fellow citizens in need. 
Unfortunately, some people have looked at Hurricane Katrina not as a 
chance to give but as an opportunity to profit. Some have decided to 
take advantage of this terrible tragedy and line their own pockets by 
price gouging the American people at the gas pump and in the energy 
needs they will experience this winter in order to heat their home and 
their place of employment.
  At a time when Americans are choosing between filling their gas tanks 
or filling their prescriptions or providing for their families, oil 
companies are

[[Page 20863]]

reaping record profits. People are rightly angry and frustrated with 
these high gas prices, and they deserve to have someone on their side 
fighting to ensure that they do not get mugged at the gas pump. Sadly, 
the administration's answer has been to sit on their hands while 
consumers get the shakedown from the oil companies.
  Today, we learn that eight Governors, including Michigan's Governor 
Granholm, sent a letter to the President and the Senate and the House 
leadership urging Congress to act immediately by putting forth 
legislation that would return excessive, unconscionably collected 
profits to the consumers. The letter, which was signed by Governor 
James Doyle of Wisconsin, states: ``When the wholesale price of gas 
went up by 60 cents almost overnight, oil companies were obviously 
using the most devastating natural disaster in our Nation's history to 
reap a windfall at the expense of the American consumers. To price 
gouge consumers under normal circumstances is dishonest enough,'' the 
letter stated, ``but to make money off the severe misfortune of others 
is downright immoral.''
  It is obvious to me that Congress needs to protect Americans from 
price gouging and market manipulations. As the lead sponsor of the FREE 
Act, Federal Response to Energy Emergencies, that I will soon 
introduce, is the Democrats' answer to the Nation's record high gas and 
oil prices. I have been joined in drafting this legislation by the 
Democratic Rural Caucus, especially the gentleman from Illinois (Mr. 
Rush) and the gentlewoman from South Dakota (Ms. Herseth).
  Currently, only 28 States have laws on the books that define price 
gouging and have enforcement mechanisms to go after those who are 
ripping off consumers. At the Federal level, there is no oversight to 
protect consumers from this predatory pricing. That is why we need this 
Federal legislation now. No American should have to pay too much for 
gas for their automobile or to heat their home this winter because the 
oil companies are rigging the prices.
  Our bill will give the President authority to take immediate action 
in the face of an energy crisis by declaring a national energy 
emergency. Our legislation mandates that the FTC, the Federal Trade 
Commission, for the first time ever will have to define price gouging 
and the criteria that makes up price gouging. It will also provide the 
FTC and the Department of Justice with the authority to investigate and 
prosecute those who engage in predatory pricing, from oil companies all 
the way down to the local gas stations, with an emphasis on those who 
profit most. This includes the gouging of gasoline prices, home heating 
oil, or natural gas.
  Our legislation expands the Federal Trade Commission's authority to 
more aggressively pursue instances of market manipulation, such as 
geographic price setting or territorial restrictions imposed by 
refineries and those who are what they call ``gaming the system.'' Our 
legislation empowers the Federal Government to impose tough civil 
penalties of up to triple damages of all excess profits on companies 
that have cheated consumers. It also imposes tough criminal penalties 
of up to $100 million on corporations, and fines of up to $1 million 
plus jail sentences for up to 10 years on individuals.
  This bill will provide relief to farmers and small businesses paying 
skyrocketing energy and transportation costs, and expand the Low Income 
Home Energy Assistance Program, LIHEAP, through fines paid by price 
gouging companies.
  My bill will protect consumers from unfair gas prices and punish 
those who think that at a time of national tragedy it is the right time 
to rob Americans of their hard-earned money. It is the right thing to 
do for consumers and for our Nation's economy.
  Look at what has been going on in the last few months, even before 
Hurricane Katrina. This is an article out of the Soo Evening News, a 
newspaper in my district. It is July 20, 2005. It is before the 
hurricane season. That day, in my home State of Michigan, gas prices 
went up 80 cents; eighty cents in one day, based upon rumor, fear, and 
speculation. You cannot tell me that no one is profiting excessively 
from America's fear.
  Also, I found an article in the Washington Post with the headline, 
``Oil Prices Spike as Storm Nears. Jump of $4.39 is Largest One-day 
Surge on Record.'' These are the reasons we must have this legislation. 
Let us pass the FREE Act.

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