H.R. 4720

119 HR 4720 IH: Cracking Down on Price Gouging Act
 U.S. House of Representatives
 2025-07-23
 text/xml
 EN
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 I  119th CONGRESS  1st Session  H. R. 4720  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.
1.
Short title
This Act may be cited as the   Cracking Down on Price Gouging Act  .
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.
 .