“To amend the Defense Production Act of 1950 to provide for stricter prohibitions on price gouging of certain materials, and for other purposes.”
No CRS summary available for this bill.
This section revises the prohibition on hoarding designated scarce materials under section 102 of the Defense Production Act of 1950 (50 U.S.C. 4512)—previously limited to accumulation beyond reasonable business, personal, or home consumption needs or for resale above prevailing market prices—to also prohibit selling or offering to sell such materials or critical goods during acute shortages at prices that grossly exceed prevailing market prices in the trade area or constitute an unfairly excessive price. It defines an unfairly excessive price as one with a gross disparity from the price immediately prior to the President's designation of scarcity or the onset of an acute shortage (presumptively a 10% increase, though lesser increases may qualify, with exceptions for a seller's legitimate business needs or uncontrollable additional costs); defines acute shortage as a negative supply impact from causes including disease, natural disaster, military conflict, terrorism, supply-chain disruptions, or extreme industry consolidation; and defines critical good to include consumer food items or services, essential medical or emergency supplies or services, energy resources (e.g., fuel, electricity, home heating oil), and other goods or services promoting public health, safety, or welfare. The section also amends section 103 to establish a specific penalty for section 102 violations of the greater of $20,000 or 300% of the revenue generated in violation.