Stop Disaster Price Gouging Act
Sponsored By: Representative Friedman
Introduced
Summary
Stops steep price gouging after presidential disaster or emergency declarations. This bill would limit post-disaster price spikes for essential goods, hotel lodging, rental housing, and repair services for specified short periods after a declaration.
Show full summary
- Families and consumers would see caps on emergency markups. The bill would limit increases for essential goods, hotel stays, and residential rentals to no more than 10% above the pre-declaration price for 30 days and ban prices more than 50% above a seller's cost for 30 days when that price was not charged before.
- Homeowners and repair contractors would face a 10% cap on repair and reconstruction price increases for 180 days, with higher charges allowed only when tied to extra supplier, labor, tariff, or trade-policy costs.
- Hotels and landlords have narrow exceptions. Seasonal hotel rate changes and rent increases tied to pre-agreed or amortized repair costs would be exempt.
- Enforcement and remedies would be broadened. The Federal Trade Commission (FTC) would enforce the rule as an unfair practice, states could bring suits, and individuals could seek actual or treble damages for willful violations; civil fines could reach $25,000 per violation with a $25,000 cap for related acts and recovered funds would go to a disaster-zone aid fund.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Limits on disaster prices for essentials
This bill would cap many prices in a presidentially declared disaster area. For 30 days after the declaration, essential goods, hotel rooms, and home rentals could not rise more than 10% over the price the day before. For repair or reconstruction services, the 10% cap would last 180 days. If a seller did not charge that price before, the price could not be more than 50% above the seller’s cost for 30 days. Essential items include food, water, generators, batteries, medicines, heating oil, building materials, transport, storage, and gasoline. Exceptions would allow seasonal hotel rates, increases tied to higher supplier, labor, or material costs (within a capped markup), tariff-driven changes, and some rent increases already agreed to or tied to repair costs.
Right to sue and FTC penalties
If enacted, you could sue if you were harmed by disaster price gouging. You could ask a court to stop it and recover your actual losses. For willful violations, a court could award up to three times your loss. Winners could get costs and attorney’s fees. You must file within 2 years of discovery. The FTC could also enforce the ban. Each violation could carry up to a $25,000 penalty, but related acts against one seller are capped at $25,000 in total. Penalties would rise with inflation after the first year. Recovered money would aid disaster-hit communities. State attorneys general could sue for residents, must notify the FTC, and the FTC could intervene. A state case would pause if a federal case is already filed against the same defendants.
Sponsors & CoSponsors
Sponsor
Friedman
CA • D
Cosponsors
Sherman
CA • D
Sponsored 3/27/2025
Roll Call Votes
No roll call votes available for this bill.
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