Consumers across the country have reported facing exorbitant prices from some sellers during the pandemic 

Legislation would prohibit the sale of essential goods and services at excessive prices during or in anticipation of a natural disaster, pandemic, or state of emergency 

WASHINGTON – U.S. Senators Amy Klobuchar (D-MN), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), and Catherine Cortez Masto (D-NV) reintroduced legislation to prohibit the selling of essential goods and services at exorbitant prices during or in anticipation of a natural disaster, pandemic, or state of emergency. Currently, the Federal Trade Commission (FTC) and other federal agencies have limited legal authority to prevent price gouging. The Disaster and Emergency Pricing Abuse Prevention Act would give the FTC more tools to go after excessive and unjustified price increases in the sale of certain products and services when an emergency or disaster occurs.

“Throughout the pandemic, we have seen people struggle to access essential goods and services at affordable prices,” Klobuchar said. “This legislation will help ensure companies do not take advantage of consumers by prohibiting price gouging during a state of emergency. I am proud to lead this important bill and will keep working to hold companies accountable for this bad behavior.”

“This legislation cracks down on nefarious price gouging scams during times of crisis and emergency. Access to essential goods and services at affordable, fair prices cannot be dictated by predatory swindlers intent on profiting from the public’s pain and hardship. To protect consumers and their pocketbooks from being needlessly overcharged, we must hold bottom-feeding grifters accountable,” Blumenthal said.

“Over the past two years, corporate executives have exploited the COVID crisis to drive up prices and line their own pockets,” Hirono said. “It is unacceptable for companies to increase their profit margins at the expense of the American people by inflating prices for essentials like insulin and gasoline. The Disaster and Emergency Pricing Abuse Prevention Act will strengthen the FTC’s ability to combat this kind of price gouging and protect American consumers.”

“Since my time as Nevada’s Attorney General, I’ve always stood against big corporations that try to take advantage of vulnerable Nevadans. This legislation would  protect Nevadans when they need it most by allowing them to access key goods and services at fair prices during emergencies. I am committed to working with my colleagues to keep our consumers protected,” Cortez Masto said.

The Disaster and Emergency Pricing Abuse Prevention Act would:

  • Prohibit selling, or offering for sale, essential goods and services at an unconscionably excessive price during or in anticipation of a natural disaster, pandemic or state of emergency;
  • Apply to goods and services that may be used to preserve, protect, or sustain the health, safety or welfare of members of the public from potential harms resulting from a natural disaster, a pandemic or the circumstances giving rise to a state of emergency;
  • Provide for potential civil penalties; and
  • Not preempt state price gouging laws. 

As a member of the Senate Commerce Committee and Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, Klobuchar has been a leader in the fight to protect consumers throughout the pandemic.

Last month, Klobuchar and Susan Collins (R-ME) announced that their bipartisan legislation to prevent fraud targeting seniors was signed into law. The Seniors Fraud Prevention Act will help fight scams designed to rob seniors of their assets by directing the Federal Trade Commission (FTC) to create an office to educate seniors about fraud schemes while also improving the agency’s monitoring and response to fraud complaints. The law passed the House and Senate last week as part of the omnibus government funding package.

In February, Klobuchar introduced legislation with Senator John Thune (R-SD) legislation to update federal regulations for the global shipping industry in order to help American producers export their products to the international market. The Ocean Shipping Reform Act would address these supply chain challenges by making it harder for ocean carriers to arbitrarily turn away goods at ports that are ready to be shipped abroad. It would also give the Federal Maritime Commission (FMC), the federal agency responsible for the regulation of oceanborne transportation, greater authority to regulate harmful practices by carriers. 

In January of 2021, Klobuchar and Senator Jerry Moran (R-KS) reintroduced legislation to protect seniors from scams during the pandemic. The Protecting Seniors from Emergency Scams Act would direct the Federal Trade Commission (FTC) to report to Congress on scams targeting seniors during the pandemic and make recommendations on how to prevent future scams during emergencies.  

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