Cracking Down on Price Gouging Act
Sponsored By: Representative Riley (NY)
Introduced
Summary
Stops price gouging and hoarding of essential goods during declared scarcities. This bill would add a clear prohibition and definitions into the Defense Production Act so regulators can identify and act against hoarding and unfairly excessive prices in shortages.
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- Families and consumers: Protects buyers of critical goods like food, medicine, and energy by banning sales that "grossly exceed" local market prices when a scarcity is designated or an acute shortage occurs. It creates a presumptive 10% gross disparity benchmark to flag unfair pricing.
- Businesses and sellers: Carves out an exception for legitimate business needs or costs outside a seller's control so higher prices tied to real cost increases may be allowed.
- Enforcement and penalties: Ties the price-gouging rules to a Presidential scarcity declaration or an acute shortage trigger. Willful violations would face the greater of $20,000 or 300% of the revenue generated by the violating sales.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Big fines for willful price gouging
If enacted, businesses that willfully gouge prices and are convicted could face large fines. The fine would be the greater of $20,000 or 300% of the revenue from the illegal sales. It would apply only after a court conviction for a willful violation of the anti-gouging rules.
Stronger shopper protections during shortages
If enacted, it would ban hoarding and unfairly high prices for critical goods during shortages. It would apply when the President labels a material scarce or when an acute shortage begins. A price 10% or more above the price before the designation or shortage would be presumed unfair, though smaller jumps could still count. Sellers could defend price increases tied to real business needs or costs they cannot control. Covered goods include food, household and medical supplies, and energy like fuel, electricity, and heating oil.
Sponsors & CoSponsors
Sponsor
Riley (NY)
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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