Sponsors (2)
The bill provides stronger, time-limited price protections and enforcement tools to shield disaster-affected consumers and direct penalties back to impacted communities, at the cost of added compliance burdens, increased legal and financial exposure for sellers, and some limits or delays in certain enforcement and recovery paths.
Residents of declared disaster areas (including low-income individuals, renters, homeowners) are protected from sharp post-disaster price increases via targeted caps: 10% limits on essential goods, lodging, and rentals for 30 days; a 10% cap on repair/reconstruction price increases for 180 days; and a limit that surprise markups cannot exceed 50% above seller cost for 30 days.
State governments and private parties (including parens patriae and private suits) can seek injunctions, damages, and restitution against price-gouging, giving consumers and states stronger tools to stop and remedy violations quickly.
Monetary penalties recovered from violations are directed to a fund that assists communities in declared disaster areas, channeling enforcement proceeds back to affected localities.
Small businesses, contractors, and suppliers could face financial strain or reduced supply availability because caps may prevent passing through legitimately higher input costs, potentially causing delays, reduced services, or business closures.
Businesses face significant enforcement liability — civil penalties up to $25,000 per violation, treble damages for willful acts, and fees — which creates exposure to large financial judgments and defensive litigation costs.
Narrow statutory exceptions (e.g., for seasonal rates or amortized repairs) and the need to document eligibility during emergencies increase administrative compliance costs and operational complexity for hotels, landlords, and repair firms.
Based on analysis of 2 sections of legislative text.
Limits post-disaster price increases for essentials, lodging, rentals, and repair services and makes violations enforceable by the FTC and state parens patriae suits.
Official title: To prohibit price gouging as an unfair and deceptive act or practice during a major disaster or emergency, and for other purposes.
Introduced March 27, 2025 by Laura Friedman · Last progress March 27, 2025
Prohibits steep price increases and excessive charges for essential goods, services, hotel lodging, and residential rentals inside areas covered by a Presidential major disaster or emergency declaration. Price caps generally limit increases to 10% above the pre-declaration price for short periods (30 days for most consumer goods/services and lodging; 180 days for repairs/reconstruction) and ban charging more than 50% above a seller’s cost for prices that were not charged before the declaration. Gives the Federal Trade Commission primary enforcement authority under its existing unfair or deceptive acts or practices tools, while preserving State attorneys general the ability to sue on behalf of residents (parens patriae) with notice to the FTC and a defined right for the FTC to intervene in those cases. The bill includes narrowly defined exceptions for legitimate cost increases, seasonal hotel rates, and certain rental increases tied to repairs or contracts.