Stop Disaster Price Gouging Act

Stop Disaster Price Gouging Act

This bill prohibits certain price increases following presidentially declared major disasters or emergencies, requires the Federal Trade Commission (FTC) to enforce the prohibition, and authorizes states and private parties to bring legal action for violations.

The bill prohibits entities from increasing prices in affected areas by more than 10% above pre-disaster prices for 30 days after the declaration date for essential consumer goods and services (e.g., food, emergency supplies, and transportation), hotel lodging, and residential rental properties. For repair or reconstruction services this prohibition lasts 180 days. Also, for 30 days, entities may not charge more than 50% above their cost for such goods, services, or housing if they did not charge that price pre-disaster. The bill provides exceptions, including for higher costs.

Violations of the prohibition are subject to specified civil penalties. Amounts recovered by the FTC must be used to assist communities in areas affected by a major disaster or emergency.  

Additionally, the bill authorizes states, with prior notice to the FTC, to bring a civil action in state or federal court when their residents are threatened or affected by a violation of the bill. It also authorizes private parties to bring an action if commenced within two years after discovering the violation.