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  For Immediate Release  
  Contact: Phil Bloomer  
  Phone: (217) 403-4690  
May 3, 2006
 
U.S. Rep. Johnson Pushes House Action on Gas Prices
 

 

 

Washington, D.C. -  The passage of anti-price-gouging legislation today will give greater protection to consumers faced with escalating gas, home-heating and other unjustified fuel price hikes, according to U.S. Rep. Tim Johnson.

“This is significant action that sets heavy penalties for price gouging and makes it easier for state and federal authorities to detect, define and prosecute these profiteers,” Rep. Johnson said.

The Federal Energy Price Protection Act prohibits price gouging and requires the Federal Trade Commission to define such activity for the retail and wholesale level so there will be a standard definition state-to-state.

The Act 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.

“This legislation should cause gas and oil marketers at all levels to think twice about taking advantage of the current energy situation,” Rep. Johnson said. “Price gouging is reprehensible and now we have the penalties to fit the crime.”

Under newly enacted civil penalties, punishment for “wholesale sale” violations is 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, penalties are simply three times the ill-gotten gains of the seller.

Criminal penalties for wholesale violations can mean a fine of up to $150 million, imprisonment of up to two years or both.

Criminal penalties for retail violations are punishable by a fine of up to $2 million, imprisonment of up to two years or both.

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