Federal Price Gouging Prevention Act of 2013 - Makes it unlawful for any person, during a proclaimed international crisis affecting the oil market, to sell gasoline or any other petroleum distillate at a price that: (1) is unconscionably excessive, and (2) indicates the seller is taking unfair advantage of the circumstances of the crisis to increase prices unreasonably.
Authorizes the President to issue such a proclamation citing the geographic area, gasoline or other petroleum distillate, and time period (not to exceed 30 consecutive days) covered. Permits such a proclamation to be renewed as the President determines appropriate and to include a period of up to one week preceding a reasonably foreseeable emergency.
Sets forth factors to be considered in determining if a violation of this Act has occurred. Requires the Federal Trade Commission (FTC) to enforce a violation of this Act as an unfair or deceptive act or practice and to give priority to enforcement actions concerning companies with U.S. sales over $10 billion per year. Prescribes civil and criminal penalties for violations, but limits the criminal penalty to criminal actions brought by the Department of Justice (DOJ).
Authorizes a state to bring a civil action to enforce this Act.
Declares that nothing in this Act preempts any state law.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2070 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2070
To protect consumers from price-gouging of gasoline and other fuels,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 21, 2013
Mr. Bishop of New York (for himself, Mr. Walz, Mr. Langevin, Mr.
Rahall, Mr. Yarmuth, Mrs. McCarthy of New York, Mr. Van Hollen, Mr.
Tierney, Ms. Kuster, and Mr. Cicilline) introduced the following bill;
which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To protect consumers from price-gouging of gasoline and other fuels,
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 ``Federal Price Gouging Prevention Act
of 2013''.
SEC. 2. UNCONSCIONABLE PRICING OF GASOLINE AND OTHER PETROLEUM
DISTILLATES DURING EMERGENCIES.
(a) Unconscionable Pricing.--
(1) In general.--It shall be unlawful for any person to
sell, at wholesale or at retail in an area and during a period
of an international crisis affecting the oil markets proclaimed
under paragraph (2), gasoline or any other petroleum distillate
covered by a proclamation issued under paragraph (2) at a price
that--
(A) is unconscionably excessive; and
(B) indicates the seller is taking unfair advantage
of the circumstances related to an international crisis
to increase prices unreasonably.
(2) Energy emergency proclamation.--
(A) In general.--The President may issue a
proclamation of an international crisis affecting the
oil markets and may designate any area within the
jurisdiction of the United States, where the
prohibition in paragraph (1) shall apply. The
proclamation shall state the geographic area covered,
the gasoline or other petroleum distillate covered, and
the time period that such proclamation shall be in
effect.
(B) Duration.--The proclamation--
(i) may not apply for a period of more than
30 consecutive days, but may be renewed for
such consecutive periods, each not to exceed 30
days, as the President determines appropriate;
and
(ii) may include a period of time not to
exceed 1 week preceding a reasonably
foreseeable emergency.
(3) Factors considered.--In determining whether a person
has violated paragraph (1), there shall be taken into account,
among other factors--
(A) whether the amount charged by such person for
the applicable gasoline or other petroleum distillate
at a particular location in an area covered by a
proclamation issued under paragraph (2) during the
period such proclamation is in effect--
(i) grossly exceeds the average price at
which the applicable gasoline or other
petroleum distillate was offered for sale by
that person during the 30 days prior to such
proclamation;
(ii) grossly exceeds the price at which the
same or similar gasoline or other petroleum
distillate was readily obtainable in the same
area from other competing sellers during the
same period;
(iii) reasonably reflected additional
costs, not within the control of that person,
that were paid, incurred, or reasonably
anticipated by that person, or reflected
additional risks taken by that person to
produce, distribute, obtain, or sell such
product under the circumstances; and
(iv) was substantially attributable to
local, regional, national, or international
market conditions; and
(B) whether the quantity of gasoline or other
petroleum distillate the person produced, distributed,
or sold in an area covered by a proclamation issued
under paragraph (2) during a 30-day period following
the issuance of such proclamation increased over the
quantity that that person produced, distributed, or
sold during the 30 days prior to such proclamation,
taking into account usual seasonal demand variations.
(b) Definitions.--As used in this section--
(1) the term ``wholesale'', with respect to sales of
gasoline or other petroleum distillates, means either truckload
or smaller sales of gasoline or petroleum distillates where
title transfers at a product terminal or a refinery, and dealer
tank wagon sales of gasoline or petroleum distillates priced on
a delivered basis to retail outlets; and
(2) the term ``retail'', with respect to sales of gasoline
or other petroleum distillates, includes all sales to end users
such as motorists as well as all direct sales to other end
users such as agriculture, industry, residential, and
commercial consumers.
SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement by FTC.--A violation of section 2 shall be treated
as a violation of a rule defining an unfair or deceptive act or
practice prescribed under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission
shall enforce this Act in the same manner, by the same means, and with
the same jurisdiction as though all applicable terms and provisions of
the Federal Trade Commission Act were incorporated into and made a part
of this Act. In enforcing section 2 of this Act, the Commission shall
give priority to enforcement actions concerning companies with total
United States wholesale or retail sales of gasoline and other petroleum
distillates in excess of $10,000,000,000 per year.
(b) Civil Penalties.--
(1) In general.--Notwithstanding the penalties set forth
under the Federal Trade Commission Act, any person who violates
section 2 with actual knowledge or knowledge fairly implied on
the basis of objective circumstances shall be subject to--
(A) a civil penalty of not more than 3 times the
amount of profits gained by such person through such
violation; or
(B) a civil penalty of not more than $100,000,000.
(2) Method.--The penalties provided by paragraph (1) shall
be obtained in the same manner as civil penalties obtained
under section 5 of the Federal Trade Commission Act (15 U.S.C.
45).
(3) Multiple offenses; mitigating factors.--In assessing
the penalty provided by subsection (a)--
(A) each day of a continuing violation shall be
considered a separate violation; and
(B) the court shall take into consideration, among
other factors, the seriousness of the violation and the
efforts of the person committing the violation to
remedy the harm caused by the violation in a timely
manner.
SEC. 4. CRIMINAL PENALTIES.
(a) In General.--In addition to any penalty applicable under
section 3, any person who violates section 2 shall be fined under title
18, United States Code, in an amount not to exceed $500,000,000.
(b) Enforcement.--The criminal penalty provided by subsection (a)
may be imposed only pursuant to a criminal action brought by the
Attorney General or other officer of the Department of Justice. The
Attorney General shall give priority to enforcement actions concerning
companies with total United States wholesale or retail sales of
gasoline and other petroleum distillates in excess of $10,000,000,000
per year.
SEC. 5. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.
(a) In General.--A State, as parens patriae, may bring a civil
action on behalf of its residents in an appropriate district court of
the United States to enforce the provisions of section 2 of this Act,
or to impose the civil penalties authorized by section 3(b)(1)(B),
whenever the attorney general of the State has reason to believe that
the interests of the residents of the State have been or are being
threatened or adversely affected by a violation of this Act or a
regulation under this Act, involving a retail sale.
(b) Notice.--The State shall serve written notice to the Federal
Trade Commission of any civil action under subsection (a) prior to
initiating such civil action. The notice shall include a copy of the
complaint to be filed to initiate such civil action, except that if it
is not feasible for the State to provide such prior notice, the State
shall provide such notice immediately upon instituting such civil
action.
(c) Authority To Intervene.--Upon receiving the notice required by
subsection (b), the Federal Trade Commission may intervene in such
civil action and upon intervening--
(1) be heard on all matters arising in such civil action;
and
(2) file petitions for appeal of a decision in such civil
action.
(d) Construction.--For purposes of bringing any civil action under
subsection (a), nothing in this section shall prevent the attorney
general of a State from exercising the powers conferred on the attorney
general by the laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the attendance of
witnesses or the production of documentary and other evidence.
(e) Venue; Service of Process.--In a civil action brought under
subsection (a)--
(1) the venue shall be a judicial district in which--
(A) the defendant operates;
(B) the defendant was authorized to do business; or
(C) the defendant in the civil action is found;
(2) process may be served without regard to the territorial
limits of the district or of the State in which the civil
action is instituted; and
(3) a person who participated with the defendant in an
alleged violation that is being litigated in the civil action
may be joined in the civil action without regard to the
residence of the person.
(f) Limitation on State Action While Federal Action Is Pending.--If
the Federal Trade Commission has instituted a civil action or an
administrative action for violation of this Act, no State attorney
general, or official or agency of a State, may bring an action under
this subsection during the pendency of that action against any
defendant named in the complaint of the Federal Trade Commission or the
other agency for any violation of this Act alleged in the complaint.
(g) Enforcement of State Law.--Nothing contained in this section
shall prohibit an authorized State official from proceeding in State
court to enforce a civil or criminal statute of such State.
SEC. 6. EFFECT ON OTHER LAWS.
(a) Other Authority of Federal Trade Commission.--Nothing in this
Act shall be construed to limit or affect in any way the Federal Trade
Commission's authority to bring enforcement actions or take any other
measure under the Federal Trade Commission Act (15 U.S.C. 41 et seq.)
or any other provision of law.
(b) State Law.--Nothing in this Act preempts any State law.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Commerce, Manufacturing, and Trade.
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