Unconscionable Pricing Act

I 116TH CONGRESS 2D SESSION H. R. 7277 To prohibit unconscionable pricing of emergency supplies for responders during a Federal emergency period, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 18, 2020 Ms. SPEIER (for herself, Mr. COHEN, Ms. JACKSON LEE, and Ms. MENG) in- troduced the following bill; which was referred to the Committee on En- ergy and Commerce A BILL To prohibit unconscionable pricing of emergency supplies for responders during a Federal emergency period, 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 ‘‘Unconscionable Pric- 4 ing Act’’. 5 SEC. 2. PURPOSES. 6 The purposes of this Act are— 7 (1) to protect local and State government agen- 8 cies and private and nonprofit organizations acting 9 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7277 IH in response to the covered emergency to protect the 1 health, safety, and welfare of persons; and 2 (2) to make it unlawful in the region or State 3 affected by a covered emergency for any person to 4 impose or otherwise charge unconscionable prices to 5 responders for the purchase or procurement of emer- 6 gency supplies during the period of the covered 7 emergency. 8 SEC. 3. PROHIBITION OF UNCONSCIONABLE PRICING DUR- 9 ING DECLARED STATE OF EMERGENCY. 10 (a) IN GENERAL.—During an emergency period it 11 shall be unlawful in the region or State affected by the 12 emergency declaration for any person to impose uncon- 13 scionable prices for the sale, rental, lease, or procurement 14 of any emergency supply. 15 (b) FACTORS FOR CONSIDERATION.—In determining 16 whether a seller has violated subsection (a), a price shall 17 be considered unconscionable if any person during the 18 emergency period charges a price that exceeds, by an 19 amount equal to or in excess of 10 percent the average 20 price at which the same or similar emergency supply was 21 obtainable in the affected area during 30 days before the 22 emergency declaration was issued and the increase in price 23 charged is not attributable to reasonable costs incurred 24 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7277 IH in connection with the rental or sale of the emergency sup- 1 ply. 2 (c) ENFORCEMENT.— 3 (1) ENFORCEMENT BY THE FEDERAL TRADE 4 COMMISSION.— 5 (A) UNFAIR OR DECEPTIVE ACTS OR PRAC- 6 TICES.—A violation of subsection (a) shall be 7 treated as a violation of a regulation under sec- 8 tion 18(a)(1)(B) of the Federal Trade Commis- 9 sion Act (15 U.S.C. 57a(a)(1)(B)) regarding 10 unfair or deceptive acts or practices. 11 (B) POWERS OF COMMISSION.—The Com- 12 mission shall enforce subsection (a) in the same 13 manner, by the same means, and with the same 14 jurisdiction, powers, and duties as though all 15 applicable terms and provisions of the Federal 16 Trade Commission Act (15 U.S.C. 41 et seq.) 17 were incorporated into and made a part of this 18 Act. Any person who violates such subsection 19 shall be subject to the penalties and entitled to 20 the privileges and immunities provided in the 21 Federal Trade Commission Act. 22 (2) EFFECT ON OTHER LAWS.—Nothing in this 23 Act shall be construed in any way to limit the au- 24 thority of the Commission under any other provision 25 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7277 IH of law or to limit the application of any Federal or 1 State law. 2 (3) ENFORCEMENT BY STATE ATTORNEYS GEN- 3 ERAL.— 4 (A) IN GENERAL.—If the chief law en- 5 forcement officer of a State, or an official or 6 agency designated by a State, has reason to be- 7 lieve that any person has violated or is violating 8 subsection (a), the attorney general, official, or 9 agency of the State, in addition to any author- 10 ity it may have to bring an action in State 11 court under its consumer protection law, may 12 bring a civil action in any appropriate United 13 States district court or in any other court of 14 competent jurisdiction, including a State court, 15 to— 16 (i) enjoin further such violation by 17 such person; 18 (ii) enforce compliance with such sub- 19 section; 20 (iii) obtain civil penalties; and 21 (iv) obtain damages, restitution, or 22 other compensation on behalf of residents 23 of the State. 24 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7277 IH (B) NOTICE AND INTERVENTION BY THE 1 FEDERAL TRADE COMMISSION.—The attorney 2 general of a State shall provide prior written 3 notice of any action under subparagraph (A) to 4 the Commission and provide the Commission 5 with a copy of the complaint in the action, ex- 6 cept in any case in which such prior notice is 7 not feasible, in which case the attorney general 8 shall serve such notice immediately upon insti- 9 tuting such action. The Commission shall have 10 the right— 11 (i) to intervene in the action; 12 (ii) upon so intervening, to be heard 13 on all matters arising therein; and 14 (iii) to file petitions for appeal. 15 (C) LIMITATION ON STATE ACTION WHILE 16 FEDERAL ACTION IS PENDING.—If the Commis- 17 sion has instituted a civil action for violation of 18 this section, no State attorney general, or offi- 19 cial or agency of a State, may bring an action 20 under this paragraph during the pendency of 21 that action against any defendant named in the 22 complaint of the Commission for any violation 23 of this Act alleged in the complaint. 24 (d) DEFINITIONS.—In this section: 25 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7277 IH (1) EMERGENCY DECLARATION.—The term 1 ‘‘emergency declaration’’ means— 2 (A) a public health emergency declared 3 pursuant to section 319 of the Public Health 4 Service Act (42 U.S.C. 247d); and 5 (B) a declaration of emergency declared 6 pursuant to the Robert T. Stafford Disaster 7 Relief and Emergency Assistance Act (42 8 U.S.C. 5121 note). 9 (2) EMERGENCY PERIOD.—The term ‘‘emer- 10 gency period’’ means the period of time following an 11 emergency declaration, including a renewal thereof, 12 and for a period of 30 days after such period ends. 13 (3) EMERGENCY SUPPLY.—The term ‘‘emer- 14 gency supply’’ means any good, material, or equip- 15 ment needed by responders to protect the health, 16 safety, and welfare of persons during the emergency 17 period. 18 (4) PERSON.—The term ‘‘person’’ shall include, 19 but not be limited to, natural persons, corporations, 20 trusts, partnerships, incorporated or unincorporated 21 associations, and any other legal entity. 22 (5) RESPONDERS.—The term ‘‘responders’’— 23 (A) means any local or State governmental 24 agency and private and nonprofit organizations, 25 VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7277 IH whether incorporated or unincorporated, acting 1 in response to the covered emergency to protect 2 the health, safety, and welfare of persons; and 3 (B) includes State and local departments 4 responsible for health and human services, 5 State procurement agencies, hospitals, and 6 medical facilities. 7 Æ VerDate Sep 11 2014 03:46 Jul 11, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H7277.IH H7277 kjohnson on DSK79L0C42PROD with BILLS