Disaster and Emergency Pricing Abuse Prevention Act
This bill prohibits a person from selling or offering for sale an essential good or service at a price that is unconscionably excessive during, or in anticipation of, a state of emergency or natural disaster. Additionally, the bill establishes a telephone hotline to receive complaints from the public about potential violations of this prohibition.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6457 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6457
To clarify that the Federal Trade Commission Act prohibits excessive
and unjustified price increases in the sale of certain products and
services when an emergency or disaster results in abnormal disruptions
of the market and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2020
Mr. Cleaver introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To clarify that the Federal Trade Commission Act prohibits excessive
and unjustified price increases in the sale of certain products and
services when an emergency or disaster results in abnormal disruptions
of the market 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 ``Disaster and Emergency Pricing Abuse
Prevention Act''.
SEC. 2. DEFINITIONS.
In this section:
(a) Commission.--The term ``Commission'' means the Federal Trade
Commission.
(b) Essential Goods or Services.--The term ``essential goods or
services'' means goods or services that may be used to preserve,
protect, or sustain the health, safety, or welfare of members of the
public from potential harms resulting from a natural disaster, a
pandemic, or the circumstances giving rise to a state of emergency.
(c) Natural Disaster.--The term ``natural disaster'' means a
disaster, catastrophe, or emergency, including flood, fire, earthquake,
storm, or other serious act of nature, which threatens the health,
safety, or welfare of the public.
(d) Person.--The term ``person'' means an individual or entity, its
directors, officers, employees, agents, representatives, successors,
and assigns, including any entity the person controls, and the
respective directors, officers, employees, agents, representatives,
successors, and assigns of each.
(e) State of Emergency.--The term ``state of emergency'' means any
state of emergency or disaster declared by the President or by the
government of any State or territory of the United States.
(f) Unconscionably Excessive Price.--The term ``unconscionably
excessive price'' means a price that represents a gross disparity
between the price of the essential good or service that is the subject
of an offer or transaction during, or in anticipation of, a natural
disaster, pandemic, or state of emergency and the average price at
which such essential good or service was offered in the ordinary course
of business prior to any public anticipation of a natural disaster,
pandemic, or state of emergency.
SEC. 3. FEDERAL TRADE COMMISSION ENFORCEMENT AGAINST PRICE GOUGING.
(a) Violation.--Selling, or offering for sale, essential goods and
services, in or affecting commerce, at an unconscionably excessive
price during, or in anticipation of, a natural disaster, pandemic, or
state of emergency, shall constitute an unfair or deceptive act or
practice under section 5(a) of the Federal Trade Commission Act (15
U.S.C. 45(a)).
(b) Civil Action.--
(1) In general.--If the Commission has reason to believe
that there has been a violation of section 5(a) of the Federal
Trade Commission Act (15 U.S.C. 45(a)) under subsection (a) of
this section, the Commission may commence a civil action to
recover a civil penalty and seek other appropriate relief in a
district court of the United States.
(2) Presumption.--In a civil action under paragraph (1),
the price of an essential good or service shall be presumed to
be an unconscionably excessive price if the price charged or
offered by the defendant during, or in anticipation of, a
natural disaster, pandemic, or state of emergency, exceeded by
20 percent the greater of--
(A) the average price charged by the defendant for
the essential good or service during the preceding 60
days before the public could reasonably have
anticipated the natural disaster, pandemic, or state of
emergency; or
(B) the average price at which buyers could obtain
such good or service or similar goods or services in
the geographic area during the 60 day period before the
date on which the public could reasonably have
anticipated the natural disaster, pandemic, or state of
emergency,
unless the price charged by the defendant is attributable to
price increases in related input markets or to additional
expenses not within the control of the defendant that increased
the defendant's costs to furnish the essential goods or
services.
(3) Civil penalty.--In an action under paragraph (1), any
person that has been found liable for a violation of section
5(a) of the Federal Trade Commission Act (15 U.S.C. 45(a))
under subsection (a) of this section shall be subject to a
civil penalty of an amount no greater than $10,000 per
violation.
(4) Rule of construction.--The civil penalty provided in
this subsection is in addition to, and not in lieu of, any
other remedies provided by Federal law, including injunctive
relief under section 13(b) of the Federal Trade Commission Act
(15 U.S.C. 53(b)). Nothing in this paragraph shall be construed
to affect any authority of the Commission under any other
provision of law.
SEC. 4. PRICE GOUGING HOTLINE.
The Commission shall establish a telephone hotline and an online
portal dedicated solely to receiving price gouging complaints from the
public, which shall be activated in anticipation of or during major
disasters or states of emergency and shall remain operational until 120
days after the conclusion of such major disasters or states of
emergency.
SEC. 5. NO PREEMPTION OF STATE LAW.
Nothing in this Act preempts any State law.
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Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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