Chairman Joe Barton

The Committee on Energy and Commerce
Joe Barton, Chairman
U.S. House of Representatives

Are You Aware of Waste, Fraud, or Abuse?

Menu

Home

About The Committee

Schedule

Members

Hearings and Markups

News

Subcommittees

Letters

Publications

Minority Website

Help

How do I find...?

Contact Us

Privacy Policy

Stay Informed

House OKs Anti-Price Gouging Measure

WASHINGTON - Gouging drivers on the price of a gallon of gasoline will become a federal crime under legislation passed Wednesday in the House. The bill, sponsored by U.S. Rep. Heather Wilson, R-N.M., passed on a vote of 389-34.

It prohibits price gouging on gasoline, diesel fuel, crude oil, home heating oil and biofuels. It does so regardless of whether the gouging occurs amid the crisis conditions like those following Hurricane Katrina or gouging drivers is just business as usual.

"We need to do something, not only to bring these prices down but we need to do something to make sure there is adequate supplies available at every service station in the country that serves the American driving public," said U.S. Rep. Joe Barton, R-Texas. "Three-dollar-a-gallon gasoline may mean nothing to some people, but it sure means something to most, and everything to the poorest of our society. If the spikes in gasoline prices are due to anything other than market conditions, consumers have a right to count on us, the government, for protection from ripoffs."

"It seems to me that this is one thing we have to do," said Wilson, a member of the House Energy and Commerce Committee "We want America to be more energy independent and that is going to take a long-term, balanced approach that deals with supply, demand and protecting consumers. This is one piece of that puzzle."

Barton and Wilson worked with Science Committee Chairman Sherwood Boehlert, R-N.Y., to draft the legislation. Boehlert praised the legislation.

"This bill is far stronger than the price gouging language the House considered last fall and could offer Americans true protection if price gouging is occurring," Boehlert said. "The bill will allow new suits under federal law against retail and wholesale price gouging, and those suits can be brought by either the federal government or a state attorney general. The penalties in the bill are significant, and the bill allows criminal as well as civil penalties."

Among the bill's highlights:

  • Directs the FTC to define "price gouging," "wholesale sale" and "retail sale" through rule-making within six months of enactment.
  • Provides for strong civil enforcement by the FTC and by states' attorneys general, and criminal enforcement by the U.S. attorney general and the Department of Justice.
  • Provides for civil penalties for price gouging.
    • For "wholesale sale" violations, the penalties are three times the ill-gotten gains of the seller, plus an amount not to exceed $3 million per day of a continuing violation.
    • For "retail sale" violations, the penalties are three times the ill-gotten gains of the seller.
    • Requires any civil penalty imposed to be deposited into any either account or fund used for paying compensation to consumers for violation of state consumer protection laws or into a state's treasury general fund.
  • Provides for criminal penalties.
    • "Wholesale" violations will be punishable by a fine of up to $150 million, imprisonment for up to two years, or both.
    • "Retail sale" violations will be punishable by a fine of no more than $2 million imprisonment for up to two years, or both.

Barton also said that the definition of price gouging would not cover spikes in gas prices that are caused by market conditions.

"Committee hearings have demonstrated that when artificial regulation supplants normal supply and demand as the primary means of pricing a commodity, the result is market distortions and shortages," Barton said. "I will strenuously oppose any policies that choke off the flow of gasoline to drivers. We want to have effective enforcement against scams without interfering with the efficient functioning of the market."

####



Document Menu

Printer Friendly

Comment On This Page

Related Documents

 

Committee Seal

The Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, DC 20515
(202) 225-2927
Contact Us