Stop Disaster Price Gouging Act

[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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