Price Gouging Prevention Act: Protecting Consumers During Market Shocks
This act aims to protect citizens from unfair price increases on essential goods and services, especially during crises like natural disasters or sudden market disruptions. It introduces penalties for companies that artificially inflate prices and expands the Federal Trade Commission's power to intervene. This ensures more stable prices for citizens during difficult times.
Key points
Prohibition on Price Gouging: Selling goods or services at a grossly excessive price becomes unlawful, regardless of the company's position in the supply chain.
Protection During Crises: Special rules apply to price gouging during "exceptional market shocks" (e.g., natural disasters, power outages), aiming to protect consumers in critical moments.
Enhanced FTC Powers: The Federal Trade Commission (FTC) gains authority to impose civil penalties, seek damages for affected consumers, and obtain injunctions against price-gouging companies.
Reporting Requirements for Large Companies: Large companies will need to disclose detailed information on price changes, sales volume, and profit margins in their financial reports, increasing transparency.
Support for State Attorneys General: State attorneys general can independently sue companies for price gouging, facilitating local enforcement and consumer protection.
Exemptions for Small Businesses: Companies with less than $100 million in annual gross revenue may be exempt if they can prove price increases are due to uncontrollable costs.
Introduced
Citizen Poll