[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3574 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3574
To protect consumers from price-gouging during emergencies.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 24, 2020
Mr. Tillis introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To protect consumers from price-gouging during emergencies.
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 ``Ending Price-Gouging During
Emergencies Act''.
SEC. 2. PROHIBITION OF UNCONSCIONABLY EXCESSIVE PRICING OF NECESSARY
GOODS AND SERVICES DURING EMERGENCIES.
(a) Unconscionable Pricing.--
(1) In general.--It shall be unlawful for any person to
sell, at wholesale or at retail in an emergency area and during
an emergency period, any good or service covered by a
proclamation issued by the Administrator of the Federal
Emergency Management Agency (in this section referred to as the
``Administrator'') 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 the emergency to
increase prices unreasonably.
(2) Necessary goods and services proclamation.--
(A) In general.--The Administrator may issue a
proclamation with respect to an emergency area during
an emergency period to designate the goods and services
to which the prohibition described in paragraph (1)
shall apply.
(B) Content of proclamation.--A proclamation issued
under this paragraph shall include the following:
(i) The geographic area covered by the
proclamation.
(ii) The time period that such proclamation
shall be in effect.
(iii) The specific goods and services or
categories of goods and services that are
subject to the prohibition described in
paragraph (1).
(C) Duration.--The proclamation 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 Administrator determines
appropriate.
(D) Authority to issue multiple proclamations.--The
Administrator may issue multiple proclamations under
this paragraph with respect to an emergency area and an
emergency period, as necessary.
(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 good or service 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 good or service 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 good or service 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 good
or service under the circumstances; and
(iv) was substantially attributable to
local, regional, national, or international
market conditions; and
(B) whether the quantity of the good or service 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 such
person produced, distributed, or sold during the 30
days prior to such proclamation, taking into account
usual seasonal demand variations.
(b) Definition of Emergency Area and Period.--In this section, an
``emergency area'' is a geographical area in which, and an ``emergency
period'' is the period during which, there exists an emergency or
disaster declared by the President pursuant to the National Emergencies
Act or the Robert T. Stafford Disaster Relief and Emergency Assistance
Act.
(c) Effective Date.--This section shall take effect on the date of
enactment of this Act and shall apply to any emergency or disaster
declaration described in subsection (b) that is in effect on such date
or made on or after such date.
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 involving instances of a good or
service being sold at an unconscionably excessive price during an
emergency period with the highest percentage increase in price over the
price for such good or service as of the second week preceding such
period.
(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 10 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 involving
instances of a good or service being sold at an unconscionably
excessive price during an emergency period with the highest percentage
increase in price over the price for such good or service as of the
second week preceding such period.
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.
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