119th CONGRESS

1st Session

H. R. 2427

1. Short title
2. Prohibition on price gouging

1. Short title

This Act may be cited as the "Stop Disaster Price Gouging Act".

2. Prohibition on price gouging

(a) Prohibition

(1) In general - Except as provided in paragraph (2), during the period described below after the date on which the President declares a major disaster or emergency under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170; 5191) and within the area in which the disaster or emergency is declared a person—

(A) - may not increase the price as of the day before such date by more than 10 percent—

(i) - with respect to essential consumer goods and services, hotel lodging, and residential rental properties, for a period of 30 days; and

(ii) - with respect to repair or reconstruction services, for a period of 180 days; and

(B) - may not charge a price for essential consumer goods and services, hotel lodging, residential rental property, or reconstruction services that is more than 50 percent greater than the cost to the person for 30 days after such date if the person did not charge that price before such date.

(2) Exception - The prohibition described in paragraph (1) does not apply as follows:

(A) - If the increased price—

(i) - is—

(I) - directly attributable to additional cost paid by the person to a supplier of the goods or for labor or materials used to provide services; and

(II) - is not more than 10 percent greater than the total of the cost to the person plus the markup customarily applied by that seller for that good or service in the usual course of business immediately prior to the onset of the major disaster or emergency; or

(ii) - is directly attributable to tariffs or national trade policies.

(B) - For a hotel or motel rate, if the increased price is attributable to seasonable adjustments that are regularly scheduled.

(C) - For a rental rate, if the increased price is directly attributable to additional costs for repairs or additions beyond normal maintenance that were amortized over the rental term that caused the rent to be increased greater than 10 percent or that an increase was contractually agreed to by the tenant prior to the disaster or emergency.

(b) Enforcement by Federal Trade Commission

(1) Unfair or deceptive acts or practices - A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.

(2) Powers of Commission - The Federal Trade Commission shall enforce subsection (a) and any regulation promulgated under such subsection in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. Any person who violates such subsection or a regulation promulgated under such subsection shall be subject to the penalties described in subsection (e) and entitled to the privileges and immunities provided in the Federal Trade Commission Act.

(1) In general - In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to—

(A) - enjoin such act or practice;

(B) - enforce compliance with such subsection or such regulation;

(D) - obtain such other legal and equitable relief as the court may consider to be appropriate.

(2) Notice - Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Commission immediately upon the filing of the action.

(3) Authority of Federal Trade Commission

(A) In general - On receiving notice under paragraph (2) of an action under this subsection, the Commission shall have the right—

(i) - to intervene in the action;

(ii) - upon so intervening, to be heard on all matters arising therein; and

(iii) - to file petitions for appeal.

(B) Limitation on State action while Federal action is pending - If the Commission or the Attorney General of the United States has instituted a civil action for violation of subsection (a) or a regulation promulgated under such subsection (referred to in this subparagraph as the "Federal action"), no State attorney general, official, or agency may bring an action under this subsection during the pendency of the Federal action against any defendant named in the complaint in the Federal action for any violation of such subsection or regulation alleged in such complaint.

(4) Rule of construction - For purposes of bringing a civil action under this subsection, nothing in this Act shall be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence.

(d) Private right of action

(1) In general - A person injured by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection may bring in an appropriate State court or an appropriate district court of the United States—

(A) - an action to enjoin the violation;

(B) - an action to recover damages for actual monetary loss from the violation; or

(2) Willful violations - If the court finds that the defendant acted willfully in committing a violation described in paragraph (1), the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under paragraph (1)(B).

(3) Costs and attorney’s fees - The court shall award to a prevailing plaintiff in an action under this subsection the costs of such action and reasonable attorney’s fees, as determined by the court.

(4) Limitation - An action may be commenced under this subsection not later than 2 years after the date on which the person first discovered or had a reasonable opportunity to discover the violation.

(5) Nonexclusive remedy - The remedy provided by this subsection shall be in addition to any other remedies available to the person.

(e) Amount of civil penalties

(1) In general - For purposes of the penalties described in subsection (b), the amount determined under this paragraph is the amount calculated by multiplying the number of violations of subsection (a) by an amount not greater than $25,000. Each violation shall be treated as a separate violation.

(2) Maximum total liability - Notwithstanding the number of actions which may be brought against a person under subsection (b), the total amount of civil penalties assessed against such person for all violations of subsection (a) and the regulations promulgated under such subsection resulting from the same or related acts or practices may not exceed $25,000.

(3) Adjustment for inflation - Beginning on the date that the Consumer Price Index is first published by the Bureau of Labor Statistics that is at least 1 year after the date of the enactment of this Act, and each year thereafter, the amount specified in paragraphs (1) and (2) shall be increased by the percentage increase, if any, in the Consumer Price Index published on such date from the Consumer Price Index published the previous year.

(4) Funding for disaster zones - Any amount recovered under subsection (b) shall be deposited into a fund to assist communities located in an area affected by a major disaster or emergency declared by the President under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170; 5191).

(f) Definitions - In this section:

(1) Commission - The term Commission means the Federal Trade Commission.

(2) Essential consumer goods and services - The term essential consumer goods and services means goods and services that are necessary for survival and recovery during and after a major disaster or emergency and include any of the following:

(A) - Food and drink, including food and drink for animals.

(B) - Emergency supplies such as water, generators, flashlights, radios, batteries, candles, blankets, soap, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers.

(C) - Medical supplies such as prescription and non prescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.

(D) - Home heating oil.

(E) - Building and construction materials such as lumber, construction tools, and windows.

(F) - Transportation.

(G) - Freight.

(H) - Storage services.

(I) - Gasoline and other motor fuels.

(g) Relation to State law - Nothing in this Act may be construed to preempt any provision of State law that does not conflict with this Act.

119-HR2427

Stop Disaster Price Gouging Act

119th CONGRESS

1st Session

H. R. 2427

1. Short title

2. Prohibition on price gouging