H.R. 2427

[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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