Cracking Down on Price Gouging: House Passes Legislation to Protect Consumers

Vice President Kamala Harris Urges Federal Ban on Price Gouging

In response to soaring prices and concerns about price gouging, Vice President Kamala Harris is expected to call for a federal ban on the practice, aiming to provide relief to consumers.

House Approves Bill Criminalizing Price Gouging

The House of Representatives approved legislation on Thursday to crack down on excessive price increases during emergencies, making it a federal crime to engage in price gouging.

Key Provisions of the Consumer Fuel Price Gouging Prevention Act

• Creates a rebuttable presumption of price gouging against firms with unfair leverage.
• Empowers the Federal Trade Commission (FTC) to enforce the ban.
• Imposes civil penalties of up to $1 million per violation.

Background on Price Gouging and its Impact

Price gouging occurs when sellers significantly increase prices of essential goods or services during times of crisis or emergency, taking advantage of consumers' desperate need.

The practice has been prevalent during natural disasters, such as hurricanes and floods, and has led to public outrage and calls for stricter regulations.

Scope of the Federal Ban

The proposed federal ban would apply to a wide range of goods and services, including food, gas, medical supplies, and emergency services.

The bill explicitly states that "it shall be unlawful for a person to sell or offer for sale any goods or services for an unconscionably excessive price during a declared emergency or major disaster."

Enforcing the Ban

The FTC would be responsible for enforcing the ban on price gouging, investigating complaints and taking appropriate enforcement actions.

The FTC has a long history of cracking down on deceptive and unfair business practices, and it is well-positioned to combat price gouging.

Penalties for Violation

The Consumer Fuel Price Gouging Prevention Act imposes significant penalties on those who violate the ban, including:

• Civil penalties of up to $1 million per violation.
• Injunctions to stop the gouging and prevent future violations.
• Restitution to consumers who have been overcharged.

Conclusion

The passage of the Consumer Fuel Price Gouging Prevention Act represents a major step towards protecting consumers from excessive price increases during emergencies.

The bill sends a clear message that price gouging is unacceptable and will not be tolerated, and it provides the FTC with the tools it needs to enforce the ban.