What This Bill Does
This bill makes it illegal to sell gasoline and other petroleum products at unfairly high prices during emergencies affecting oil markets. The bill applies only when the President declares an energy emergency in a specific area and sets rules for how prices can be challenged during that emergency period.
Who It Affects
People who buy gasoline and other fuel products at gas stations and for other uses like farming or heating.
Gasoline and fuel sellers, wholesalers, and refineries.
The Federal Trade Commission (a government agency that enforces consumer protection laws).
State attorneys general (the chief legal officers of each state).
The U.S. Department of Justice and the Attorney General.
Key Provisions
• Sellers cannot charge "unconscionably excessive" prices that show they are unfairly taking advantage of an emergency when the President declares one in a specific area. The law applies to both wholesale and retail sales. (Sec. 2(a)(1))
• The President can declare an emergency affecting oil markets in any geographic area and name which fuels and time periods the price controls cover. Each declaration can last up to 30 days but can be renewed for additional 30-day periods. (Sec. 2(a)(2))
• When deciding if someone illegally price-gouged, courts must check if the price grossly exceeds what that seller charged in the 30 days before the emergency or what competitors were charging during the emergency. (Sec. 2(a)(3))
• Violations are treated as unfair or deceptive business practices enforced by the Federal Trade Commission with the same legal authority and processes as other violations of federal consumer protection laws. (Sec. 3(a))
• People who violate this law can face civil penalties of up to three times the profits they made from the illegal pricing or up to $100,000,000 in penalties, whichever is higher. (Sec. 3(b)(1))
• Criminal fines up to $500,000,000 can be imposed in addition to civil penalties for violations. (Sec. 4(a))
• State attorneys general can sue fuel sellers in federal court on behalf of their residents for retail price violations without waiting for federal action, but must notify the Federal Trade Commission first. (Sec. 5(a) and (b))
What Changes
If this becomes law, fuel sellers cannot legally charge extremely high prices during declared energy emergencies. People can face major fines and criminal penalties for illegal price-gouging. State attorneys general gain the power to prosecute fuel sellers for illegal pricing during emergencies on behalf of their residents in federal court.
Important Definitions
"Wholesale" means sales of gasoline or fuel where the product transfers at a terminal or refinery, or sales delivered directly to retail gas stations.
"Retail" means all sales directly to people using the fuel, including motorists and businesses like farms, factories, homes, and commercial buildings.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 355
To protect consumers from price-gouging of gasoline and other fuels, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 9, 2023
Ms. DUCKWORTH (for herself, Mr. BLUMENTHAL, Mrs. MURRAY, and Ms.
WARREN) introduced the following bill; which was read twice and referred
to the Committee on Commerce, Science, and Transportation
A BILL
To protect consumers from price-gouging of gasoline and
other fuels, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Federal Price Gouging
4
Prevention Act’’.
5
SEC. 2. UNCONSCIONABLE PRICING OF GASOLINE AND
6
OTHER PETROLEUM DISTILLATES DURING
7
EMERGENCIES.
8
(a) UNCONSCIONABLE PRICING.—
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(1) IN GENERAL.—It shall be unlawful for any
1
person to sell, at wholesale or at retail in an area
2
and during a period of a domestic or an inter-
3
national crisis affecting the oil markets proclaimed
4
under paragraph (2), gasoline or any other petro-
5
leum distillate covered by a proclamation issued
6
under paragraph (2) at a price that—
7
(A) is unconscionably excessive; and
8
(B) indicates the seller is taking unfair ad-
9
vantage of the circumstances related to a do-
10
mestic or an international crisis to increase
11
prices unreasonably.
12
(2) ENERGY EMERGENCY PROCLAMATION.—
13
(A) IN
GENERAL.—The President may
14
issue a proclamation of a domestic or an inter-
15
national crisis affecting the oil markets and
16
may designate any area within the jurisdiction
17
of the United States (including the entire
18
United States), where the prohibition in para-
19
graph (1) shall apply. The proclamation shall
20
state the geographic area covered, the gasoline
21
or other petroleum distillate covered, and the
22
time period that such proclamation shall be in
23
effect.
24
(B) DURATION.—The proclamation—
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(i) may not apply for a period of more
1
than 30 consecutive days, but may be re-
2
newed for such consecutive periods, each
3
not to exceed 30 days, as the President de-
4
termines appropriate; and
5
(ii) may include a period of time not
6
to exceed 1 week preceding a reasonably
7
foreseeable emergency.
8
(3) FACTORS
CONSIDERED.—In determining
9
whether a person has violated paragraph (1), there
10
shall be taken into account, among other factors—
11
(A) whether the amount charged by such
12
person for the applicable gasoline or other pe-
13
troleum distillate at a particular location in an
14
area covered by a proclamation issued under
15
paragraph (2) during the period such proclama-
16
tion is in effect—
17
(i) grossly exceeds the average price
18
at which the applicable gasoline or other
19
petroleum distillate was offered for sale by
20
that person during the 30 days prior to
21
such proclamation;
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(ii) grossly exceeds the price at which
23
the same or similar gasoline or other pe-
24
troleum distillate was readily obtainable in
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the same area from other competing sellers
1
during the same period;
2
(iii) reasonably reflected additional
3
costs, not within the control of that person,
4
that were paid, incurred, or reasonably an-
5
ticipated by that person, or reflected addi-
6
tional risks taken by that person to
7
produce, distribute, obtain, or sell such
8
product under the circumstances; and
9
(iv) was substantially attributable to
10
local, regional, national, or international
11
market conditions; and
12
(B) whether the quantity of gasoline or
13
other petroleum distillate the person produced,
14
distributed, or sold in an area covered by a
15
proclamation issued under paragraph (2) dur-
16
ing a 30-day period following the issuance of
17
such proclamation increased over the quantity
18
that that person produced, distributed, or sold
19
during the 30 days prior to such proclamation,
20
taking into account usual seasonal demand vari-
21
ations.
22
(b) DEFINITIONS.—As used in this section—
23
(1) the term ‘‘wholesale’’, with respect to sales
24
of gasoline or other petroleum distillates, means ei-
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ther truckload or smaller sales of gasoline or petro-
1
leum distillates where title transfers at a product
2
terminal or a refinery, and dealer tank wagon sales
3
of gasoline or petroleum distillates priced on a deliv-
4
ered basis to retail outlets; and
5
(2) the term ‘‘retail’’, with respect to sales of
6
gasoline or other petroleum distillates, includes all
7
sales to end users such as motorists as well as all
8
direct sales to other end users such as agriculture,
9
industry, residential, and commercial consumers.
10
SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
11
SION.
12
(a) ENFORCEMENT BY FTC.—A violation of section
13
2 shall be treated as a violation of a rule defining an un-
14
fair or deceptive act or practice prescribed under section
15
18(a)(1)(B) of the Federal Trade Commission Act (15
16
U.S.C. 57a(a)(1)(B)). The Federal Trade Commission
17
shall enforce this Act in the same manner, by the same
18
means, and with the same jurisdiction as though all appli-
19
cable terms and provisions of the Federal Trade Commis-
20
sion Act were incorporated into and made a part of this
21
Act. In enforcing section 2 of this Act, the Commission
22
shall give priority to enforcement actions concerning com-
23
panies with total United States wholesale or retail sales
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of gasoline and other petroleum distillates in excess of
1
$10,000,000,000 per year.
2
(b) CIVIL PENALTIES.—
3
(1) IN
GENERAL.—Notwithstanding the pen-
4
alties set forth under the Federal Trade Commission
5
Act, any person who violates section 2 with actual
6
knowledge or knowledge fairly implied on the basis
7
of objective circumstances shall be subject to—
8
(A) a civil penalty of not more than 3
9
times the amount of profits gained by such per-
10
son through such violation; or
11
(B) a civil penalty of not more than
12
$100,000,000.
13
(2) METHOD.—The penalties provided by para-
14
graph (1) shall be obtained in the same manner as
15
civil penalties obtained under section 5 of the Fed-
16
eral Trade Commission Act (15 U.S.C. 45).
17
(3) MULTIPLE
OFFENSES; MITIGATING
FAC-
18
TORS.—In assessing the penalty provided by sub-
19
section (a)—
20
(A) each day of a continuing violation shall
21
be considered a separate violation; and
22
(B) the court shall take into consideration,
23
among other factors, the seriousness of the vio-
24
lation and the efforts of the person committing
25
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the violation to remedy the harm caused by the
1
violation in a timely manner.
2
SEC. 4. CRIMINAL PENALTIES.
3
(a) IN GENERAL.—In addition to any penalty appli-
4
cable under section 3, any person who violates section 2
5
shall be fined under title 18, United States Code, in an
6
amount not to exceed $500,000,000.
7
(b) ENFORCEMENT.—The criminal penalty provided
8
by subsection (a) may be imposed only pursuant to a
9
criminal action brought by the Attorney General or other
10
officer of the Department of Justice. The Attorney Gen-
11
eral shall give priority to enforcement actions concerning
12
companies with total United States wholesale or retail
13
sales of gasoline and other petroleum distillates in excess
14
of $10,000,000,000 per year.
15
SEC. 5. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTOR-
16
NEYS GENERAL.
17
(a) IN GENERAL.—A State, as parens patriae, may
18
bring a civil action on behalf of its residents in an appro-
19
priate district court of the United States to enforce the
20
provisions of section 2 of this Act, or to impose the civil
21
penalties authorized by section 3(b)(1)(B), whenever the
22
attorney general of the State has reason to believe that
23
the interests of the residents of the State have been or
24
are being threatened or adversely affected by a violation
25
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of this Act or a regulation under this Act, involving a re-
1
tail sale.
2
(b) NOTICE.—The State shall serve written notice to
3
the Federal Trade Commission of any civil action under
4
subsection (a) prior to initiating such civil action. The no-
5
tice shall include a copy of the complaint to be filed to
6
initiate such civil action, except that if it is not feasible
7
for the State to provide such prior notice, the State shall
8
provide such notice immediately upon instituting such civil
9
action.
10
(c) AUTHORITY TO INTERVENE.—Upon receiving the
11
notice required by subsection (b), the Federal Trade Com-
12
mission may intervene in such civil action and upon inter-
13
vening—
14
(1) be heard on all matters arising in such civil
15
action; and
16
(2) file petitions for appeal of a decision in such
17
civil action.
18
(d) CONSTRUCTION.—For purposes of bringing any
19
civil action under subsection (a), nothing in this section
20
shall prevent the attorney general of a State from exer-
21
cising the powers conferred on the attorney general by the
22
laws of such State to conduct investigations or to admin-
23
ister oaths or affirmations or to compel the attendance
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of witnesses or the production of documentary and other
1
evidence.
2
(e) VENUE; SERVICE OF PROCESS.—In a civil action
3
brought under subsection (a)—
4
(1) the venue shall be a judicial district in
5
which—
6
(A) the defendant operates;
7
(B) the defendant was authorized to do
8
business; or
9
(C) the defendant in the civil action is
10
found;
11
(2) process may be served without regard to the
12
territorial limits of the district or of the State in
13
which the civil action is instituted; and
14
(3) a person who participated with the defend-
15
ant in an alleged violation that is being litigated in
16
the civil action may be joined in the civil action with-
17
out regard to the residence of the person.
18
(f) LIMITATION ON STATE ACTION WHILE FEDERAL
19
ACTION IS PENDING.—If the Federal Trade Commission
20
has instituted a civil action or an administrative action
21
for violation of this Act, no State attorney general, or offi-
22
cial or agency of a State, may bring an action under this
23
subsection during the pendency of that action against any
24
defendant named in the complaint of the Federal Trade
25
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Commission or the other agency for any violation of this
1
Act alleged in the complaint.
2
(g) ENFORCEMENT OF STATE LAW.—Nothing con-
3
tained in this section shall prohibit an authorized State
4
official from proceeding in State court to enforce a civil
5
or criminal statute of such State.
6
SEC. 6. EFFECT ON OTHER LAWS.
7
(a) OTHER AUTHORITY OF FEDERAL TRADE COM-
8
MISSION.—Nothing in this Act shall be construed to limit
9
or affect in any way the Federal Trade Commission’s au-
10
thority to bring enforcement actions or take any other
11
measure under the Federal Trade Commission Act (15
12
U.S.C. 41 et seq.) or any other provision of law.
13
(b) STATE LAW.—Nothing in this Act preempts any
14
State law.
15
Æ
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