A group of mostly Democrats this week told Federal Trade Commission Chair Lina Khan that federal price gouging bans would be in place in the event of a major disaster like Hurricane Helen. It asked for more information on how it would help “hold bad actors accountable.”
Led by Sen. Elizabeth Warren (D-Mass.) and Rep. Hank Johnson (D-Ga.), Sen. Bernie Sanders (D-Vt.) and Rep. Jan Schakowsky (D-Vt.). Eleven members of Congress signed the letter, including the state of Illinois. ), Cartwright (D-Pennsylvania), Rosa DeLauro (D-Connecticut), Maxwell Frost (D-Florida), Pramila Jayapal (D-Washington), and Frederica Wilson (D-Florida).
In the letter, the lawmakers cited price gouging efforts in dozens of states, including legislation and hotlines, and addressed recent price gouging allegations in North Carolina and South Carolina in the wake of the Helen incident. also mentioned.
“In the two weeks since hurricane landfall, Florida and North Carolina have activated state-based price gouging hotlines where consumers can report suspected instances of price gouging,” they wrote.
“Consumers are taking action to hold price gougers accountable. The North Carolina Attorney General's Office received the following report.” Approximately 200 complaints The aftermath of the Helen incident led to price gouging, and South Carolina Over 300 complaints” the letter said.
The federal price gouging law enforced by the FTC “strengthens and standardizes state-level efforts to combat price gouging,” the lawmakers said.
“Price gouging laws vary by state with respect to how long restrictions remain in effect and how long price gougers can be investigated and held accountable,” they wrote, adding that federal price gouging laws “would provide for the same thing. ' he claimed. Consumer protection applies to all consumers, regardless of where they live. ”
They also said that jurisdictional limitations at the state level could “allow larger distributors and companies further up the supply chain to escape liability,” while federal law “allows larger distributors and companies further up the supply chain to avoid liability.” “This could be key to countering price gouging by upstream suppliers and suppliers.” By companies operating in multiple states. ”
“The current regulatory system forces state attorneys general to focus on small retailers operating within their states, but retailers themselves are victims of price gouging from large suppliers. They said the federal ban “could allow the FTC to assist state attorneys general in narrowing their targets.” Large multi-state organizations that may be involved in price gouging. ”
In the letter, the lawmakers submitted a series of questions for the agency to answer by Oct. 23, including the authority the agency has to combat price gouging and how the federal ban will affect state efforts. .
The letter also copies comments made by Transportation Secretary Pete Buttigieg after he recently warned of “serious allegations of airline price gouging.”
“We are closely monitoring flights to and from areas affected by Hurricane Milton to ensure that airlines are not charging excessively increased fares,” he said. wrote on social platform X earlier this week.
The call comes weeks after Vice President Kamala Harris called on the federal government to ban “food and grocery price gouging” during her campaign.
But the idea has faced pushback from critics like former President Trump. Panned The proposals have been dubbed “socialist price controls,” but some experts say such proposals serve to target large companies with the funds to avoid enforcement at the state level. states that it is possible.
