H.R. 4720

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4720 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 4720

To amend the Defense Production Act of 1950 to provide for stricter 
prohibitions on price gouging of certain materials, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 23, 2025

Mr. Riley of New York introduced the following bill; which was referred 
to the Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Defense Production Act of 1950 to provide for stricter 
prohibitions on price gouging of certain materials, 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 ``Cracking Down on Price Gouging 
Act''.

SEC. 2. PROHIBITION ON PRICE GOUGING OF CERTAIN MATERIALS.

The Defense Production Act of 1950 (50 U.S.C. 4512) is amended--
(1) in section 102--
(A) by striking ``In'' and inserting the following:
``(a) Prohibition on Hoarding and Price Gouging of Certain 
Materials or Goods.--In'';
(B) by inserting ``and price gouging'' after 
``prevent hoarding'';
(C) by striking ``accumulate (1)'' and inserting 
``(1) accumulate'';
(D) by striking ``for the purpose of resale at 
prices in excess of prevailing market prices'' and 
inserting ``sell or offer to sell at prices that 
grossly exceed prevailing market prices for the same or 
similar materials or critical goods in the trade area 
or at an unfairly excessive price'';
(E) by striking ``accumulation.'' and inserting 
``accumulation, or any critical good under an acute 
shortage.'';
(F) by inserting ``scarce'' after ``designation 
of''; and
(G) by adding at the end the following:
``(b) Unfairly Excessive Price.--
``(1) In general.--A price is an unfairly excessive price 
if there is a gross disparity in the price of a material or 
critical good at the time of the transaction and the price of 
the material or critical good immediately prior to--
``(A) the effective date of the President 
designating the material as a scarce material; or
``(B) the date on which an acute shortage of the 
critical good begins.
``(2) Gross disparity.--
``(A) Presumptive.--A presumptive gross disparity 
includes a 10 percent increase of price relative to--
``(i) the effective date of the President 
designating the material as a scarce material; 
or
``(ii) the date on which an acute shortage 
of the critical good begins.
``(B) Other price increase.--Nothing in this 
subsection shall preclude a price increase that is less 
than a 10 percent increase of the price of a material 
or critical good relative to the price on the effective 
date of the President designating such material as a 
scarce material, or the date on which an acute shortage 
begins, from constituting a gross disparity.
``(3) Exception.--Notwithstanding paragraphs (1) and (2), a 
price is not an unfairly excessive price if it is the result 
of--
``(A) a legitimate business need of the seller; or
``(B) additional costs outside the control of the 
seller.
``(c) Definitions.--In this section:
``(1) Acute shortage.--The term `acute shortage' means any 
negative supply impact that is caused by--
``(A) a disease;
``(B) a pathogen;
``(C) a natural disaster;
``(D) a military conflict;
``(E) terrorism;
``(F) supply-chain disruptions;
``(G) extreme industry consolidation; or
``(H) any other similar exigent constraint.
``(2) Critical good.--The term `critical good' means--
``(A) any consumer food item, good, or service that 
is used, bought, or rendered primarily for personal, 
family, or household purposes;
``(B) any essential medical or emergency supply or 
service;
``(C) any energy resource, including--
``(i) fuel;
``(ii) electricity; or
``(iii) home heating oil; or
``(D) any other essential good or service used to 
promote the health, safety, or welfare of the 
public.''; and
(2) in section 103--
(A) by striking ``Any'' and inserting the 
following:
``(a) In General.--Except as described in subsection (b), any''; 
and
(B) by adding at the end the following:
``(b) Penalty for Violation of Section 102.--Any person who 
willfully performs any act prohibited by the provisions of section 102 
or any rule, regulation, or order thereunder, shall, upon conviction, 
be fined the greater of $20,000 or 300 percent of the revenue generated 
in violation of such section.''.
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