Sponsors (2)
The bill strengthens short-term consumer protections against price gouging in declared disasters and funnels enforcement proceeds back to affected communities, but it increases compliance burdens and potential liability for sellers and can create timing and enforcement trade-offs between state and federal actions.
Residents and consumers in federally declared disaster areas will face limits on opportunistic price increases: essential goods, lodging, and rentals are capped at a 10% increase for the first 30 days, repair/reconstruction services are capped at a 10% increase for 180 days, and sellers generally cannot impose surprise markups above 50% of seller cost for 30 days when such higher prices were not a
State attorneys general and private parties can bring enforcement actions (including parens patriae actions and private suits) to seek injunctions, damages, restitution, and other relief against price-gouging violators, increasing paths for victims and states to obtain remedies and deter misconduct
Recovered civil penalties and similar enforcement proceeds are directed into a fund to assist communities in declared disaster areas, channeling enforcement dollars back toward recovery and local needs
Small businesses, contractors, and sellers (including hotels and repair firms) could face financial strain or reduced availability of goods and services if the caps prevent them from passing through genuine input-cost increases or surge supply costs during recovery
Businesses face significant enforcement exposure—civil penalties up to $25,000 per violation, possible trebled damages for willful violations, and fee exposure—that could impose large liabilities (and defensive costs) on firms accused of price-gouging
Narrow exceptions and recordkeeping (e.g., for seasonal rates or amortized repair pricing) may impose administrative burdens and compliance costs on hotels, landlords, repair firms, and other businesses trying to document eligibility during chaotic emergency conditions
Based on analysis of 2 sections of legislative text.
Limits price increases in presidentially declared disaster areas (mostly 10% caps for 30–180 days and a 50% cap on new spikes), enforced by the FTC and state attorneys general.
Introduced March 27, 2025 by Laura Friedman · Last progress March 27, 2025
Prohibits sellers from substantially raising prices inside areas covered by a presidential major disaster or emergency declaration. It caps most price increases at 10% for 30 days (many consumer goods, services, lodging, rentals) and caps repair/reconstruction price increases at 10% for 180 days, while also barring one-off spikes over 50% above a seller’s cost for 30 days. The Federal Trade Commission enforces the rule, and states may sue on behalf of residents with notice to the FTC.