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I
116TH CONGRESS
2D SESSION
H. R. 6472
To prohibit price gouging in connection with the public health emergency
resulting from COVID–19, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 7, 2020
Ms. SCHAKOWSKY (for herself, Mr. PALLONE, Mr. CICILLINE, Mr. NADLER,
Mr. CA´RDENAS, and Mr. LUJA´N) introduced the following bill; which was
referred to the Committee on Energy and Commerce
A BILL
To prohibit price gouging in connection with the public
health emergency resulting from COVID–19, and for
other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘COVID–19 Price
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Gouging Prevention Act’’.
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SEC. 2. PREVENTION OF PRICE GOUGING.
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(a) IN GENERAL.—For the duration of a public
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health emergency declared pursuant to section 319 of the
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Public Health Service Act (42 U.S.C. 247d) as a result
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of confirmed cases of 2019 novel coronavirus (COVID–
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19), including any renewal thereof, it shall be unlawful
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for any person to sell or offer for sale a good or service
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at a price that—
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(1) is unconscionably excessive; and
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(2) indicates the seller is using the circumstan-
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ces related to such public health emergency to in-
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crease prices unreasonably.
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(b) FACTORS FOR CONSIDERATION.—In determining
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whether a person has violated subsection (a), there shall
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be taken into account, with respect to the price at which
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such person sold or offered for sale the good or service,
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factors that include the following:
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(1) Whether such price grossly exceeds the av-
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erage price at which the same or a similar good or
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service was sold or offered for sale by such person—
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(A) during the 90-day period immediately
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preceding January 31, 2020; or
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(B) during the same 90-day period of the
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previous year.
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(2) Whether such price grossly exceeds the av-
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erage price at which the same or a similar good or
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service was readily obtainable from other similarly
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situated competing sellers before January 31, 2020.
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(3) Whether such price reasonably reflects addi-
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tional costs, not within the control of such person,
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that were paid, incurred, or reasonably anticipated
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by such person, or reasonably reflects the profit-
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ability of forgone sales or additional risks taken by
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such person, to produce, distribute, obtain, or sell
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such good or service under the circumstances.
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(c) ENFORCEMENT.—
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(1) ENFORCEMENT BY FEDERAL TRADE COM-
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MISSION.—
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(A) UNFAIR OR DECEPTIVE ACTS OR PRAC-
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TICES.—A violation of subsection (a) shall be
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treated as a violation of a regulation under sec-
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tion 18(a)(1)(B) of the Federal Trade Commis-
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sion Act (15 U.S.C. 57a(a)(1)(B)) regarding
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unfair or deceptive acts or practices.
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(B) POWERS OF COMMISSION.—The Com-
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mission shall enforce subsection (a) in the same
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manner, by the same means, and with the same
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jurisdiction, powers, and duties as though all
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applicable terms and provisions of the Federal
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Trade Commission Act (15 U.S.C. 41 et seq.)
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were incorporated into and made a part of this
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Act. Any person who violates such subsection
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shall be subject to the penalties and entitled to
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the privileges and immunities provided in the
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Federal Trade Commission Act.
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(2) EFFECT ON OTHER LAWS.—Nothing in this
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Act shall be construed in any way to limit the au-
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thority of the Commission under any other provision
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of law.
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(3) ENFORCEMENT BY STATE ATTORNEYS GEN-
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ERAL.—
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(A) IN
GENERAL.—If the chief law en-
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forcement officer of a State, or an official or
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agency designated by a State, has reason to be-
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lieve that any person has violated or is violating
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subsection (a), the attorney general, official, or
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agency of the State, in addition to any author-
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ity it may have to bring an action in State
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court under its consumer protection law, may
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bring a civil action in any appropriate United
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States district court or in any other court of
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competent jurisdiction, including a State court,
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to—
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(i) enjoin further such violation by
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such person;
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(ii) enforce compliance with such sub-
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section;
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(iii) obtain civil penalties; and
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(iv) obtain damages, restitution, or
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other compensation on behalf of residents
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of the State.
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(B) NOTICE AND INTERVENTION BY THE
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FTC.—The attorney general of a State shall
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provide prior written notice of any action under
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subparagraph (A) to the Commission and pro-
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vide the Commission with a copy of the com-
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plaint in the action, except in any case in which
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such prior notice is not feasible, in which case
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the attorney general shall serve such notice im-
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mediately upon instituting such action. The
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Commission shall have the right—
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(i) to intervene in the action;
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(ii) upon so intervening, to be heard
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on all matters arising therein; and
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(iii) to file petitions for appeal.
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(C) LIMITATION ON STATE ACTION WHILE
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FEDERAL ACTION IS PENDING.—If the Commis-
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sion has instituted a civil action for violation of
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this Act, no State attorney general, or official
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or agency of a State, may bring an action under
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this paragraph during the pendency of that ac-
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tion against any defendant named in the com-
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plaint of the Commission for any violation of
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this Act alleged in the complaint.
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(D)
RELATIONSHIP
WITH
STATE-LAW
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CLAIMS.—If the attorney general of a State has
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authority to bring an action under State law di-
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rected at acts or practices that also violate this
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Act, the attorney general may assert the State-
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law claim and a claim under this Act in the
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same civil action.
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(4) SAVINGS
CLAUSE.—Nothing in this Act
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shall preempt or otherwise affect any State or local
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law.
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(d) DEFINITIONS.—In this section:
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(1) COMMISSION.—The term ‘‘Commission’’
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means the Federal Trade Commission.
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(2) GOOD
OR
SERVICE.—The term ‘‘good or
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service’’ means a good or service offered in com-
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merce, including—
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(A) food, beverages, water, ice, a chemical,
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or a personal hygiene product;
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(B) any personal protective equipment for
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protection from or prevention of contagious dis-
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eases, filtering facepiece respirators, medical
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supplies (including medical testing supplies),
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cleaning supplies, disinfectants, sanitizers; or
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(C) any healthcare service, cleaning serv-
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ice, or delivery service.
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(3) STATE.—The term ‘‘State’’ means each of
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the several States, the District of Columbia, each
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commonwealth, territory, or possession of the United
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States, and each federally recognized Indian Tribe.
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Æ
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