WASHINGTON – Today, both in the Energy and Commerce Committee and on the floor of the House of Representatives, Congressman Bart Stupak (D-MI) led the Democrats in fighting to end gas price gouging. The actions were based on Stupak’s F.R.E.E. Act, Federal Response to Energy Emergencies Act, which was introduced today.

Stupak was joined by Congressmen Rick Boucher (D-VA) in offering an amendment based on his legislation before the Energy and Commerce Committee. Stupak also spoke from the house floor as Congress considered the Department of Justice Authorization bill offering similar language in a procedural maneuver that would have forced Congress to reconsider the bill and include his gas price gouging legislation. Republicans defeated both measures on a strict party line vote.

“Even before the devastation caused by Hurricane Katrina, skyrocketing oil and gasoline prices were taxing American families and burdening our nation’s economy—with the notable exception of the oil industry which continued to rack up record profits,” Stupak said. “The legislative efforts I lead today would ensure that the federal government has the tools needed to adequately respond to energy emergencies and prohibit price gouging – with a priority on refineries and big oil companies.”

Stupak’s legislation would give the President the authority to take immediate action in the face of an energy crisis by declaring a national energy emergency and making it illegal for the sale of crude oil, gasoline or petroleum at unconscionable levels.

The legislation would also provide the Federal Trade Commission (FTC) with new authority to investigate and prosecute those that engage in this “predatory pricing”, from oil companies on down to local gas stations, with an emphasis on those who profit most.  This includes the gouging of gasoline, home heating oil, propane or natural gas. Stupak’s legislation would empower the federal government to impose tough civil penalties – of up to triple damages of all excess profits – on companies that have cheated consumers

In the last month there have been more than 7,000 complaints of price gouging filed with the Department of Energy (DOE). Reports in some parts of the country indicated gasoline prices exceeded $6 per gallon after Hurricane Katrina. Currently, only 28 states have laws on the books that define price gouging and have enforcement mechanisms to go after those found ripping of consumers. At the Federal level, there is no oversight to protect consumers from this “predatory pricing.”   

The legislation would direct the FTC to prohibit practices that result in market manipulation and expand the FTC’s authority to include those offenses which involve geographic price-setting or territorial restrictions imposed by refiners. The federal government would be allowed to impose tough civil and criminal penalties for those who manipulate or gouge prices. Some fines collected from such offences will go towards the Low-Income Home Energy Assistance Program (LIHEAP) which aids consumers in paying their heating bills.

“Sadly, the Administration and Republican leadership’s answer has been to sit on their hands while consumers get the shakedown from the oil companies,” Stupak said. “My legislation will protect ALL consumers from unfair gas prices and punish those who think a time of tragedy is the right time to rob Americans of their hard earned money. It's the right thing to do for consumers and for our nation's economy.”

Last week, eight governors wrote in a letter to Congress urging passage of federal price gouging legislation stated: “To price-gouge consumers under normal circumstances is dishonest enough, but to make money off of the severe misfortune of others is downright immoral.” 

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