Bill · H.R. 2427· House(119-HR-2427)
Stop Disaster Price Gouging Act
- Introduced
- 3/27/2025
- Last activity
- 3/27/2025 — Referred to the House Committee on Energy and Commerce.
- Sponsored by
- Laura Friedman
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Stop Disaster Price Gouging Act aims to prohibit price gouging during a declared major disaster or emergency. It limits price increases for essential consumer goods, services, hotel lodging, and residential rentals to 10 percent for a specific duration. It also restricts prices from exceeding 50 percent of the provider's cost. The bill grants enforcement powers to the Federal Trade Commission and allows State attorneys general to take legal action. Additionally, it provides a private right of action for injured individuals to seek damages.
Yes· 3 of 7
Does this give people more protection from unfair business practices?+7
The bill provides strong protections against price gouging of essential goods and services during emergencies.
Would households on low incomes be better off under this?+6
The bill protects low-income households from extreme price hikes on essential needs during disasters.
Does this improve help for people hit by a disaster?+6
The bill creates a fund from civil penalties to assist communities affected by major disasters.
The opposite
Would business owners be better off under this?-3
The bill imposes price restrictions that may limit profit margins during critical periods.
Who it would affect, and how
Potential Positive Impacts for People
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Price Stability for Essentials: The bill prevents prices for essential items like food, water, medical supplies, and fuel from being increased by more than 10 percent during a disaster (Section 2(a)(1)(A)).
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Protection Against Extreme Markups: It prevents providers from charging more than 50 percent above their actual costs for essential goods and services (Section 2(a)(1)(B)).
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Legal Recourse for Victims: Injured individuals can sue to stop violations and recover actual monetary losses (Section 2(d)(1)).
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Support for Recovery via Penalties: Civil penalties collected by the Federal Trade Commission are deposited into a fund to help communities affected by the disaster (Section 2(e)(4)).
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State-Level Protection: State attorneys general can bring civil actions to enforce compliance or seek compensation for residents (Section 2(c)(1)).
Potential Negative Impacts for People
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Potential Burdens on Providers for Cost Increases: Providers may face restrictions even when their costs rise, unless the increase is directly attributable to additional costs from suppliers or labor and remains within a specific markup limit (Section 2(a)(2)(A)).
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Restrictions on Rental Increases: Landlords may be prevented from increasing rent to cover significant repairs or additions unless the increase was contractually agreed to beforehand (Section 2(a)(2)(C)).
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Limitations on Legal Actions: A State attorney general cannot bring an action if a Federal action is already pending against the same defendant (Section 2(c)(3)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+6Good For Middle Class Households+4Good For Business Owners-3
- Economy And Finance
- Improves Consumer Protection+7
- Governance And Ideology
- Increases Federal Power+4Increase States Rights+3
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+6
- Social Issues And Justice
- Improves Affordable Housing+5
- 3/27/2025
- Referred to the House Committee on Energy and Commerce.
- 1 Cosponsor added.
- Introduced in House
Brad ShermanDemocrat · California