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 be required to disclose more information about their pricing and costs in financial reports.
Key points
Price Gouging Ban: Selling goods or services at unconscionably excessive prices during an exceptional market shock will be unlawful.
Small Business Exemption: Small businesses (with less than $100 million in annual revenue) may be exempt if price increases are due to uncontrollable costs.
Increased FTC Powers: The Federal Trade Commission (FTC) will have enhanced authority to impose penalties and seek consumer compensation.
Disclosure Requirements: Large companies will need to provide detailed information on price, cost, and margin changes in their financial reports during market shocks.
State Attorney General Enforcement: State attorneys general will also be able to take legal action against price gougers.
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