Cracking Down on Price Gouging Act

This measure cracks down on price gouging during shortages. It updates the Defense Production Act to ban hoarding and to stop sellers from charging far above the going price in the area for certain materials and “critical goods” when supplies are tight. A price can be treated as unfair if it’s much higher than it was right before the President labels a material as scarce or a serious shortage begins; a jump of about 10% or more can count as unfair unless the seller can show real business needs or costs they can’t control.

People who break these rules on purpose can face fines of either $20,000 or three times the money they made from the overpriced sales, whichever is higher.

• Who is affected: Businesses that sell certain materials and “critical goods” during shortages; people buying those items when supplies are tight.
• What changes: Stronger ban on hoarding and price gouging; a simple test for when a price is “unfair” (including a 10% jump rule of thumb), with exceptions for real cost increases; tough fines for violations.
• When it applies: During times when the President declares a material scarce or when an acute shortage begins in a community or market area.