Preventing Pandemic Profiting Act

I 116TH CONGRESS 2D SESSION H. R. 6264 To prohibit price gouging during a state of emergency declaration, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 12, 2020 Mr. SMITH of Missouri (for himself and Mr. GOTTHEIMER) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To prohibit price gouging during a state of emergency declaration, 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 ‘‘Preventing Pandemic 4 Profiting Act’’. 5 SEC. 2. PROHIBITION. 6 (a) IN GENERAL.—Chapter 11 of title 18, United 7 States Code, is amended by inserting after section 220 the 8 following: 9 VerDate Sep 11 2014 17:51 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6264.IH H6264 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6264 IH ‘‘§ 221. Price gouging during a state of emergency 1 declaration 2 ‘‘(a) IN GENERAL.—Whoever, in any location that 3 has received a state of emergency declaration, knowingly 4 sells or offers for sale, during the effective period of such 5 declaration, any goods or services identified by the Sec- 6 retary of Health and Human Services as vital and nec- 7 essary for the health, safety, and welfare of consumers, 8 including medical treatment, at an unconscionably exces- 9 sive price, shall be fined not more than $1,000, imprisoned 10 not more than 5 years, or both. 11 ‘‘(b) DEFINITIONS.—In this section: 12 ‘‘(1) STATE OF EMERGENCY DECLARATION.— 13 The term ‘state of emergency declaration’ means— 14 ‘‘(A) a public health emergency declaration 15 under section 319 of the Public Health Service 16 Act; 17 ‘‘(B) a major disaster declaration under 18 section 401 of the Robert T. Stafford Disaster 19 Relief and Emergency Assistance Act; or 20 ‘‘(C) an emergency declaration under sec- 21 tion 501 of the Robert T. Stafford Disaster Re- 22 lief and Emergency Assistance Act. 23 ‘‘(2) UNCONSCIONABLY EXCESSIVE PRICE.— 24 The term ‘unconscionably excessive price’— 25 VerDate Sep 11 2014 17:51 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6264.IH H6264 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6264 IH ‘‘(A) means a price higher than the aver- 1 age price at which goods or services were sold 2 or offered for sale during the 30-day period 3 prior to the date on which a state of emergency 4 declaration is made; and 5 ‘‘(B) does not include— 6 ‘‘(i) an increased price that reflects 7 the average profit margin during the 30- 8 day period prior to the date on which a 9 state of emergency declaration is made, 10 plus an increase in the cost of services or 11 the cost of acquiring, producing, selling, 12 transporting, and delivering goods; or 13 ‘‘(ii) any price agreed to by a seller 14 and consumer prior to the date on which 15 a state of emergency declaration is made.’’. 16 (b) CLERICAL AMENDMENT.—The table of sections 17 for chapter 11 of title 18, United States Code, is amended 18 by inserting after the item related to section 220 the fol- 19 lowing: 20 ‘‘221. Price gouging during a state of emergency declaration.’’. (c) APPLICATION.—This Act and the amendments 21 made by this Act shall apply with respect to conduct oc- 22 curring on or after the date of enactment of this Act. 23 Æ VerDate Sep 11 2014 00:35 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H6264.IH H6264 pamtmann on DSKBC07HB2PROD with BILLS