H.R. 4720

119th CONGRESS 1st Session

To amend the Defense Production Act of 1950 to provide for stricter prohibitions on price gouging of certain materials, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · July 23, 2025 · Sponsor: Mr. Riley of New York · Committee: Committee on Financial Services

Table of contents

• H.R. 4720
  • SEC. 1. Short title
  • SEC. 2. Prohibition on price gouging of certain materials

SEC. 1. Short title

• This Act may be cited as the Cracking Down on Price Gouging Act.

SEC. 2. Prohibition on price gouging of certain materials

• The Defense Production Act of 1950 () is amended— 50 U.S.C. 4512
  • in section 102—
    • by striking and inserting the following:
      • (a) Prohibition on hoarding and price gouging of certain materials or goods
        • In
    • by inserting after ;
    • by striking accumulate (1)and inserting (1) accumulate;
    • by striking for the purpose of resale at prices in excess of prevailing market pricesand inserting sell or offer to sell at prices that grossly exceed prevailing market prices for the same or similar materials or critical goods in the trade area or at an unfairly excessive price;
    • by striking accumulation.and inserting accumulation, or any critical good under an acute shortage.;
    • by inserting after ; and
      • (b) Unfairly excessive price
        • (1) In general
          • A price is an unfairly excessive price if there is a gross disparity in the price of a material or critical good at the time of the transaction and the price of the material or critical good immediately prior to—
            • the effective date of the President designating the material as a scarce material; or
            • the date on which an acute shortage of the critical good begins.
        • (2) Gross disparity
          • (A) Presumptive
            • A presumptive gross disparity includes a 10 percent increase of price relative to—
              • (i) the effective date of the President designating the material as a scarce material; or
              • (ii) the date on which an acute shortage of the critical good begins.
          • (B) Other price increase
            • Nothing in this subsection shall preclude a price increase that is less than a 10 percent increase of the price of a material or critical good relative to the price on the effective date of the President designating such material as a scarce material, or the date on which an acute shortage begins, from constituting a gross disparity.
        • (3) Exception
          • Notwithstanding paragraphs (1) and (2), a price is not an unfairly excessive price if it is the result of—
            • a legitimate business need of the seller; or
            • additional costs outside the control of the seller.
      • (c) Definitions
        • In this section:
          • The term means any negative supply impact that is caused by— acute shortage
          • The term means— critical good
    • by adding at the end the following:
  • in section 103—
    • by striking and inserting the following:
      • (a) In general
        • Except as described in subsection (b), any
    • by adding at the end the following:
      • (b) Penalty for violation of section 102
        • Any person who willfully performs any act prohibited by the provisions of section 102 or any rule, regulation, or order thereunder, shall, upon conviction, be fined the greater of $20,000 or 300 percent of the revenue generated in violation of such section.