Price Gouging Prevention Act: Protecting Consumers During Market Shocks
This act aims to protect consumers from unfair price increases on essential goods and services during crises like natural disasters or emergencies. It introduces penalties for companies that excessively raise prices and expands the Federal Trade Commission's power to intervene. Companies will also need to disclose more information about their pricing and costs in financial reports.
Key points
Price Gouging Ban: Companies are prohibited from selling goods and services at unconscionably excessive prices during exceptional market shocks (e.g., natural disasters, power outages).
Consumer Protection: The Federal Trade Commission (FTC) gains enhanced powers to impose penalties and seek compensation for affected consumers.
Price Transparency: Large companies will be required to disclose changes in their prices, costs, and profit margins during crisis periods, helping to identify unfair practices.
Small Business Exemption: Small businesses (with revenues under $100 million) may be exempt if price increases are directly due to uncontrollable additional costs.
Expired
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