119-hr2427

[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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