Stop Disaster Price Gouging Act

This bill aims to stop price gouging right after the President declares a major disaster or emergency. In the affected area, sellers can’t raise prices by more than 10% for essential goods and services, hotel rooms, or residential rent for 30 days. For repair or rebuilding work, that 10% cap lasts 180 days. For the first 30 days, if a seller didn’t charge a higher price before the disaster, they also can’t charge more than 50% above their own cost. There are sensible exceptions for real cost increases, tariffs, regular seasonal hotel rates, and certain rent increases tied to repairs or prior agreements.

Violations are treated like unfair or deceptive practices and are enforced by the Federal Trade Commission. State attorneys general and consumers can also sue. Courts can stop violations, award damages, and triple them for willful violations. People who win can recover legal fees, but they must file within two years. Civil penalties can go up to $25,000 (adjusted yearly), and money collected by the federal government goes into a fund to help disaster-hit communities. The bill doesn’t override state laws that don’t conflict with it. “Essential consumer goods and services” means things needed for survival and recovery after a disaster .

Key points

• Who is affected: Sellers of essential goods and services, hotels, landlords, and repair/reconstruction providers in the disaster area.
• What changes: 10% price cap for 30 days (essentials, hotels, rent) and 180 days (repairs); 50%-over-cost guardrail for 30 days; exceptions for real cost increases and seasonal rates; FTC, states, and consumers can enforce; penalties up to $25,000, with funds aiding disaster communities; attorney fees for winning consumers; 2-year deadline to sue; state laws preserved if not in conflict .
• When it applies: Starting the day the President declares a major disaster or emergency, for the time periods above, in the declared area.