Sponsor
Josh Riley
Representative · D-NY
Representative · D-NY
Prohibits selling scarce or critical goods at grossly or unfairly excessive prices, defines terms, and adds penalties up to the greater of $20,000 or 300% of violative revenue.
The bill strengthens government tools and penalties to limit price-gouging and protect consumers and critical services in declared shortages, at the cost of heavy penalties, legal ambiguity, and incentives that may push small sellers to restrict supply or raise prices and impose enforcement costs on taxpayers.
Low-income consumers, patients, and emergency responders are less likely to face extreme price spikes for food, medicines, fuel, and emergency supplies during declared acute shortages.
Stronger criminal penalties and large fines create a deterrent against intentional price-gouging and hoarding during crises, reducing incentives for exploitative behavior.
Clearer statutory definitions of 'acute shortage' and 'critical good' give government authorities and state officials more confidence and speed to deploy protective measures in shortages.
Small sellers and independent businesses face very large financial penalties (e.g., up to 300% of violating revenue) and potential criminal liability, raising compliance costs or pushing some out of business.
Businesses may preemptively raise prices, limit sales, or restrict inventory to avoid liability, which could shrink availability of essential goods and make shortages worse for hospitals and consumers during emergencies.
Ambiguous terms (e.g., 'grossly exceed') and broad or unclear standards for 'willful' conduct create litigation risk and the potential for overcriminalization or prosecutions for accidental or marginal pricing errors.
Based on analysis of 2 sections of legislative text.
Official title: To amend the Defense Production Act of 1950 to provide for stricter prohibitions on price gouging of certain materials, and for other purposes.
Introduced July 23, 2025 by Josh Riley · Last progress July 23, 2025
Makes it a federal crime to sell or offer to sell scarce or “critical” goods at grossly excessive or unfairly excessive prices and expands anti-hoarding rules during acute shortages. The bill adds definitions for “critical good,” “acute shortage,” and “unfairly excessive price” (including a presumptive 10% threshold), and authorizes fines equal to the greater of $20,000 or 300% of revenue from the violation for willful breaches.