Rep. Cleaver Introduces Legislation to Combat Price Gouging During Crises, Protect Missouri Families

Press Release

Today, U.S. Representative Emanuel Cleaver, II (D-MO) reintroduced legislation that would crack down on predatory price gouging during times of national crisis. The Disaster and Emergency Pricing Abuse Prevention Act would prohibit unconscionable price increases on essential goods and services, including the sale of fuel, medication, and other items, during or in anticipation of a natural disaster, pandemic, or state of emergency. With the Federal Trade Commission (FTC) currently limited in its authority to combat price gouging at the federal level, Rep. Cleaver's bill would give the FTC additional tools and legal authority to cut down on exorbitant price increases on critical items, such as gasoline, when an emergency or disaster arises. Companion legislation has been introduced by Senator Amy Klobuchar (D-MN) in the U.S. Senate.

"In recent years, we've watched Big Oil and greedy executives exploit the global pandemic and other times of crisis, such as natural disasters, to unnecessarily raise prices on consumers and pad their profits to record-breaking levels. It is way past time for Congress to stand up to the corporate greed that has helped drive up prices and fight for hardworking families that are being ripped off," said Congressman Cleaver. "The Disaster and Emergency Pricing Abuse Prevention Act will give the FTC the tools and clear legal authority needed to go after corporations or nefarious actors who are trying to get rich off of Americans in crisis. To ensure our economy is one that works for working people, Congress must do more to protect consumers from corporate price gouging--and that's what my legislation would do."

The Disaster and Emergency Pricing Abuse Prevention Act would:

Prohibit selling, or offering for sale, essential goods and services at an unconscionably excessive price during or in anticipation of a natural disaster, pandemic or state of emergency;
Apply to goods and services that may be used to preserve, protect, or sustain the health, safety or welfare of members of the public from potential harms resulting from a natural disaster, a pandemic or the circumstances giving rise to a state of emergency;
Establish a national price gouging hotline for consumers to report nefarious actors;
Provide for potential civil penalties; and
Not preempt state price gouging laws.
"Right now, there is no federal law that explicitly prohibits price gouging--and we're seeing an inadequate patchwork of state laws that leave families like those here in Missouri unprotected," said Congressman Cleaver. "Not only would my legislation give the FTC the clear authority to crack down on this pernicious practice, but it would provide the tools needed to do so effectively and efficiently. I will continue to work with my colleagues in the House and Senate to protect consumers in Missouri, and that starts with passage of the Disaster and Emergency Pricing Abuse Prevention Act."

Official text of the Disaster and Emergency Pricing Abuse Prevention Act is available here.

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