No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4720 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4720
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
Mr. Riley of New York introduced the following bill; which was referred
to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Defense Production Act of 1950 to provide for stricter
prohibitions on price gouging of certain materials, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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 (50 U.S.C. 4512) is amended--
(1) in section 102--
(A) by striking ``In'' and inserting the following:
``(a) Prohibition on Hoarding and Price Gouging of Certain
Materials or Goods.--In'';
(B) by inserting ``and price gouging'' after
``prevent hoarding'';
(C) by striking ``accumulate (1)'' and inserting
``(1) accumulate'';
(D) by striking ``for the purpose of resale at
prices in excess of prevailing market prices'' and
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'';
(E) by striking ``accumulation.'' and inserting
``accumulation, or any critical good under an acute
shortage.'';
(F) by inserting ``scarce'' after ``designation
of''; and
(G) by adding at the end the following:
``(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--
``(A) the effective date of the President
designating the material as a scarce material; or
``(B) 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) a legitimate business need of the seller; or
``(B) additional costs outside the control of the
seller.
``(c) Definitions.--In this section:
``(1) Acute shortage.--The term `acute shortage' means any
negative supply impact that is caused by--
``(A) a disease;
``(B) a pathogen;
``(C) a natural disaster;
``(D) a military conflict;
``(E) terrorism;
``(F) supply-chain disruptions;
``(G) extreme industry consolidation; or
``(H) any other similar exigent constraint.
``(2) Critical good.--The term `critical good' means--
``(A) any consumer food item, good, or service that
is used, bought, or rendered primarily for personal,
family, or household purposes;
``(B) any essential medical or emergency supply or
service;
``(C) any energy resource, including--
``(i) fuel;
``(ii) electricity; or
``(iii) home heating oil; or
``(D) any other essential good or service used to
promote the health, safety, or welfare of the
public.''; and
(2) in section 103--
(A) by striking ``Any'' and inserting the
following:
``(a) In General.--Except as described in subsection (b), any'';
and
(B) 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line