Sponsors (2)
Last progress March 27, 2025 (10 months ago)
Introduced on March 27, 2025 by Laura Friedman
Referred to the House Committee on Energy and Commerce.
Bans unreasonable price increases for essential goods, hotel lodging, rental housing, and repair services in areas hit by a major disaster or emergency after the President issues a declaration. It applies only in the affected area and during the covered period. Gives the Federal Trade Commission power to enforce the ban, lets states and private individuals sue, and sets civil penalties. Creates a fund to hold money recovered from violations. The bill defines what counts as “essential” goods and services and includes specified exceptions.
During the period after a Presidential declaration of a major disaster or emergency and within the declared area, a person may not increase a price by more than 10 percent as of the day before the declaration for certain items and services.
The 10 percent increase limit applies for 30 days after the declaration for essential consumer goods and services, hotel lodging, and residential rental properties.
The 10 percent increase limit applies for 180 days after the declaration for repair or reconstruction services.
For 30 days after the declaration, a person who did not previously charge a given price may not charge a price for essential goods/services, hotel lodging, residential rental property, or reconstruction services that is more than 50 percent greater than that person’s cost for the item or service.
Price increases are allowed if the increase is directly attributable to additional costs paid to a supplier or for labor or materials and the new price is not more than 10 percent greater than the seller’s cost plus the customary markup the seller used immediately before the disaster.
Consumers in disaster areas gain protections from sudden, excessive price spikes on basics, temporary lodging, rentals, and repair work. Renters and displaced families may see fewer steep increases for housing and hotel rooms during emergencies.
Businesses that sell essential goods, offer lodging, lease housing, or provide repair services must ensure any price increases are reasonable under the standard in the bill, which may require better documentation and compliance procedures.
The Federal Trade Commission will handle investigations and enforcement, likely increasing its post‑disaster workload. States gain an additional enforcement tool, and private rights of action may increase litigation, further deterring price gouging. Funds collected from penalties and recoveries are deposited into a dedicated fund specified by the bill.
Overall, the measure aims to curb exploitative pricing while allowing defined exceptions, balancing consumer protection with operational realities for sellers and service providers.