Price Gouging Prevention Act: New FTC Powers and Penalties for Excessive Pricing.
This Act aims to protect consumers from unfair price increases (price gouging) during market shocks like disasters or emergencies. It makes selling goods or services at a 'grossly excessive price' unlawful and grants the Federal Trade Commission (FTC) and state attorneys general broad new powers to seek penalties and restitution for affected consumers. Large corporations with significant revenue will face stricter scrutiny and higher potential fines, directly impacting price stability during difficult times.
Key points
Ban on Excessive Pricing: Selling goods or services at a 'grossly excessive price' is made unlawful, regardless of the seller's position in the supply chain.
Stricter Rules During Crises: During an 'exceptional market shock' (e.g., natural disaster), companies may be presumed to be violating the law if their prices are excessive compared to the pre-crisis period.
Higher Penalties for Large Entities: Companies with over $1 billion in annual revenue face a presumption of 'unfair leverage' and are subject to higher civil penalties (up to 5% of the ultimate parent entity's revenue).
Mandatory Price Disclosure: Covered public companies must disclose detailed information in SEC filings regarding changes in sales volume, average prices, gross margins, and pricing strategies during crisis quarters.
FTC Empowerment: The FTC receives $1 billion in additional funding and expanded authority to enforce these rules, including the power to seek civil penalties and consumer compensation.
Expired
Citizen Poll