[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2427 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2427
To prohibit price gouging as an unfair and deceptive act or practice
during a major disaster or emergency, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Ms. Friedman (for herself and Mr. Sherman) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To prohibit price gouging as an unfair and deceptive act or practice
during a major disaster or emergency, 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 ``Stop Disaster Price Gouging Act''.
SEC. 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 Federal Trade Commission Act
(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 Federal Trade
Commission Act (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.
(c) Actions by States.--
(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;
(C) obtain damages, restitution, or other
compensation on behalf of residents of the State; or
(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
(C) both such actions.
(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.
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