[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3839 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 3839
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 SENATE OF THE UNITED STATES
March 15, 2022
Ms. Klobuchar (for herself, Mr. Blumenthal, Ms. Cortez Masto, and Ms.
Hirono) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
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 Act:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Essential good or service.--The term ``essential good
or service'' means any good or service 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.
(3) 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.
(4) 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.
(5) 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.--It shall be unlawful for any person to sell, or
offer for sale, in or affecting commerce any essential good or service
at an unconscionably excessive price during, or in anticipation of, a
natural disaster, pandemic, or state of emergency.
(b) Enforcement.--
(1) Unfair or deceptive acts or practices.--A violation of
this section or a regulation promulgated under this section
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)).
(2) Powers of the commission.--
(A) In general.--Except as otherwise provided in
subparagraph (C), the Commission shall enforce this
section and the regulations promulgated under this
section 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 Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this section.
(B) Privileges and immunities.--Any person who
violates this section or a regulation promulgated under
this section shall be subject to the penalties, and
entitled to the privileges and immunities, provided in
the Federal Trade Commission Act (15 U.S.C. 41 et
seq.).
(C) Application to common carriers and nonprofit
organizations.--Notwithstanding section 4, 5(a)(2), or
6 of the Federal Trade Commission Act (15 U.S.C. 44,
45(a)(2), 46) or any jurisdictional limitation of the
Commission, the Commission shall also enforce this
section and the regulations promulgated under this
section, in the manner provided under this subsection,
with respect to--
(i) common carriers subject to the
Communications Act of 1934 (47 U.S.C. 151 et
seq.) and all Acts amendatory thereof and
supplementary thereto; and
(ii) organizations not organized to carry
on business for their own profit or that of
their members.
(3) Rulemaking.--The Commission may promulgate in
accordance with section 553 of title 5, United States Code,
such rules as may be necessary to carry out this section.
(4) Effect on other laws.--Nothing in this section shall be
construed in any way to limit the 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
mechanism to enable the public to report price gouging complaints,
which shall be activated in anticipation of or during a natural
disaster, pandemic, or state of emergency and shall remain operational
until 120 days after the conclusion of such disaster, pandemic, or
state of emergency.
SEC. 5. NO PREEMPTION OF STATE LAW.
Nothing in this Act preempts any State law.
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