Treat Emergency Victims Fairly Act of 2005 - Declares it is unlawful for any seller of goods or services of any type (including food, transportation, housing, and energy supplies) to engage in price gouging, that is, the charging of an unreasonable and unconscionable price for such a good or service immediately before, during, or after a natural disaster or other emergency formally declared by federal or state authorities.
Permits the federal government, through the Attorney General, or a state government acting through its attorney general, to bring an action in federal or state court to enforce this Act.
Requires an action that is brought under this Act in federal court to receive expedited review.
Permits the Attorney General of the United States and a state attorney general, respectively, to recover restitution or disgorgement of excess profits.
States that this Act does not preempt or otherwise affect any state or local law.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1854 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1854
To prohibit price gouging for commodities and services sold during
national emergency situations.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 6, 2005
Mr. Salazar introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To prohibit price gouging for commodities and services sold during
national emergency situations.
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 ``Treat Emergency Victims Fairly Act
of 2005''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Price gouging in emergencies, including natural
disasters and other emergencies, is reprehensible commercial
activity.
(2) Emergencies place great strains on commercial and
consumer relationships in the areas affected.
(3) Emergencies can strain commercial and consumer
relationships in areas beyond those directly damaged or
affected by the emergency.
(4) It is an unfortunate truth that some will try to take
advantage of others in emergency situations by price gouging
for consumer and other commercial goods or services.
(5) Price gouging can take place prior to, during, and
following natural disasters and other emergencies.
(6) Price gouging in commercial and consumer settings
affects interstate commerce.
(7) Price gouging--
(A) distorts markets without regard to State lines;
(B) disturbs and interferes with the flow of
commodities and services across State lines; and
(C) creates or exacerbates shortages and
interruptions of supplies of materials across State
lines.
(8) It is in the interest of the United States to prohibit
and deter price gouging.
SEC. 3. DEFINITIONS.
In this Act:
(1) Emergency.--The term ``emergency'' means a natural
disaster or other circumstance or event that is formally
declared to be an emergency by Federal or State authorities. An
emergency may be associated with a designated area.
(2) Goods or services.--The term ``goods or services''
means goods or services of any type, including food,
transportation, housing, and energy supplies.
(3) Person.--The term ``person'' means a natural person,
corporation, governmental body, or other entity.
(4) Price gouging.--
(A) In general.--The term ``price gouging'' means
charging an unreasonable and unconscionable price for a
good or service immediately prior to, during, or
following an emergency.
(B) Presumption.--
(i) Affirmative.--A price for a good or
service is presumed to be unreasonable and
unconscionable--
(I) in the designated area of an
emergency if it reflects a price
increase at least 10 percent greater
than the average price for the good or
service charged by the seller in the
designated area during the 30 days
prior to the formal declaration of the
emergency; and
(II) outside the designated area of
an emergency if the price is affected
by the emergency and if the price
reflects a price increase at least 10
percent greater than the average price
for the good or service charged by the
seller in the area of the sale during
the 30 days prior to the formal
declaration of an emergency.
For purposes of subclause (II), a price is
presumed to be affected by the emergency if,
within 30 days following the declaration of the
emergency, the price is at least 25 percent
greater than the average price for the good or
service charged by the seller in the area of
the sale during the 30 days prior to the formal
declaration of the emergency.
(ii) Negative.--A price for a good or
service is not unreasonable and unconscionable
if it reflects only the cost of the good or
service to the seller prior to the emergency,
the average profit margin of the seller during
the 30 days prior to the formal declaration of
an emergency, and the increased costs actually
incurred by the seller to sell the good or
service during or following the emergency.
SEC. 4. CAUSE OF ACTION.
(a) In General.--It shall be unlawful for any seller of goods or
services to engage in price gouging.
(b) Litigation.--A cause of action under this section may be
brought--
(1) in Federal or State court; and
(2) by the Federal Government, through the Attorney
General, or a State Government acting through its attorney
general.
(c) Venue and Procedure.--
(1) Federal court.--An action in Federal court under this
section may be brought in any court whose jurisdiction
includes--
(A) the geographic area in which price gouging is
alleged to have occurred; or
(B) the State which is a plaintiff in the action.
(2) State court.--An action in State court under this
section shall conform to State rules of procedure.
(d) Expedited Federal Consideration.--An action under this section
in Federal court shall receive expedited review.
(e) Investigations.--
(1) In general.--During the course of an investigation
under this section by the Attorney General of the United States
or a State attorney general, whether prior to filing an action
or during such an action, the investigating attorney general
may--
(A) order any person to file a statement, report in
writing, or answer questions in writing, under oath or
otherwise, concerning facts or circumstances reasonably
related to alleged price gouging;
(B) order any person to provide data or information
the attorney general reasonably deems to be necessary
to an investigation; and
(C) issue subpoenas to require the attendance of
witnesses or the production of relevant documents,
administer oaths, and conduct hearings in aid of the
investigation.
(2) Enforcement.--A subpoena issued under this subsection
may be enforced in Federal or State court.
(3) Penalty.--Failure to comply with an order or subpoena
under this subsection is subject to a civil penalty of up to
$10,000.
(f) Limitation.--An action under this section shall be brought not
later than 3 years of the date of the sale of the goods or services at
issue.
SEC. 5. DAMAGES AND PENALTIES.
(a) In General.--A prevailing plaintiff shall be entitled to--
(1) plaintiff's damages incurred as a result of the price
gouging, including without limitation a refund of all prices
paid by the plaintiff in excess of conscionable and reasonable
prices;
(2) injunctive relief prohibiting the defendant from price
gouging or mandating action; and
(3) attorneys fees and costs incurred by the plaintiff.
(b) Restitution.--The Attorney General of the United States and a
State attorney general, in an action brought on behalf of the citizens
of the United States or a State, respectively, may recover restitution
or disgorgement of excess profits on behalf of those citizens.
(c) Civil Penalties.--
(1) In general.--A person who violates section 4(a) shall
be subject to civil penalties of up to $10,000 per incident.
(2) Disposition of penalties.--Civil penalties collected
through an action by the United States Attorney General shall
be deposited in the United States Treasury. Civil penalties
collected through an action by an attorney general of a State
shall be deposited in the State's treasury. The court may
apportion the deposit of civil penalties as appropriate in the
circumstances.
SEC. 6. ATTORNEY GENERAL AUTHORITIES.
The Attorney General of the United States shall--
(1) provide assistance to and cooperate with the States in
State investigations of price gouging and in State litigation
brought under this Act;
(2) create and disseminate guidelines designed to assist
the public to recognize and report price gouging and establish
a system to gather and disseminate information about instances
of reported price gouging; and
(3) provide grants to offices of the State attorneys
general of not greater than $50,000 in order to support the
pursuit of price gouging investigations and other activities.
SEC. 7. SAVINGS PROVISION.
This Act shall not preempt or otherwise affect any State or local
law.
<all>
Introduced in Senate
Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR 10/7/2005 S11237)
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