Bill · H.R. 4720· House(119-HR-4720)
Cracking Down on Price Gouging Act
- Introduced
- 7/23/2025
- Last activity
- 7/23/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Josh Riley
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Cracking Down on Price Gouging Act" seeks to amend the Defense Production Act of 1950. It aims to provide stricter prohibitions on the price gouging of certain materials and critical goods. The bill introduces a definition for "unfairly excessive prices" based on gross disparities compared to prices before a shortage or designation. It also establishes specific definitions for "acute shortage" and "critical good." Additionally, the bill introduces penalties for those who willfully violate these new provisions.
Yes· 3 of 6
Does this give people more protection from unfair business practices?+7
The bill prohibits price gouging on essential goods like food, medical supplies, and energy during shortages.
Would households on low incomes be better off under this?+6
The bill prevents extreme price hikes on essential consumer goods that disproportionately affect low-income budgets.
Would middle-income households be better off under this?+5
The bill provides stability in the costs of essential goods like food and energy during periods of shortage.
The opposite
Would business owners be better off under this?-5
The bill introduces strict price controls and heavy financial penalties for those selling critical goods during shortages.
Who it would affect, and how
Potential Positive Impacts for People
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Protection against excessive pricing: The bill prohibits selling materials or critical goods at prices that grossly exceed prevailing market prices or at an unfairly excessive price (Section 2, Section 102).
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Clear definition of unfair pricing: It establishes a presumptive gross disparity when there is a 10 percent increase in price relative to the date a shortage begins or a President designates a material as scarce (Section 2, Section 102(b)(2)).
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Broad scope of protected goods: The definition of "critical good" includes consumer food items, essential medical or emergency supplies, energy resources like fuel and electricity, and other goods used to promote public health, safety, or welfare (Section 2, Section 102(c)(2)).
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Accountability for shortages: The bill addresses supply impacts caused by specific events like diseases, natural disasters, military conflicts, or supply-chain disruptions (Section 2, Section 102(c)(1)).
Potential Negative Impacts for People
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Financial penalties for violators: Any person who willfully violates these provisions can be fined the greater of $20,000 or 300 percent of the revenue generated from the violation (Section 2, Section 103(b)).
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Potential impact on legitimate business needs: While there are exceptions, the bill targets prices that may be tied to the legitimate business needs of a seller or additional costs outside of their control (Section 2, Section 102(b)(3)).
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+5Good For Urban Residents+3Good For Business Owners-5
- Economy And Finance
- Improves Consumer Protection+7
- Healthcare
- Improves Healthcare Access+5
- Social Issues And Justice
- Improves Poverty Reduction+4
- 7/23/2025
- Referred to the House Committee on Financial Services.
- Introduced in House