Cleaver Calls On The Payments Industry To Help Combat Price Gouging During Coronavirus Pandemic
(Kansas City, MO) – Today, United States Representative Emanuel Cleaver, II (D-MO) sent a letter to the Electronic Transactions Association (ETA) calling on the payments industry's leading trade association to adopt terms and conditions against price gouging for their member organizations to follow.
In the letter, Congressman Cleaver wrote:
"As has been widely reported, in addition to existing economic hardships, American customers have been squeezed by some vendors to pay increased prices for goods and services – sometimes in excess of ten times the normal price… Many vendors who choose to price gouge consumers in times of emergency rely on electronic transactions for point of sale execution – particularly, but not exclusively, in online retail. These vendors are largely dependent on the services of your members, who are non-conspiring third-party intermediaries or service providers, to exploit vulnerable Americans… I call on your members, respectively, to adopt terms and conditions against price gouging and report offenders to appropriate authorities."
Congressman Cleaver has recommended the ETA take the following steps to disincentivize exploitation and profiteering:
- Adopt clear policies against using member services for purpose of price gouging in emergencies—even in states and jurisdictions that may lack statutes
- Refuse business with vendors who have been successfully prosecuted for violating price gouging statutes
- Reverse transactions that have been found to violate anti-price gouging terms and conditions as determined by respective members
- Publicize COVID-19 specific directives for customers who wish to report vendors attempting to use member services to facilitate unlawful transactions
- Issue COVID-19 specific communications to vendors about reminders, updates and/or member positions
- Work with relevant federal, state and local entities to refer suspected cases of price gouging for further review
"I think we can all agree that no business should be profiteering off of a global pandemic by price gouging Americans who are already facing dire economic distress," said Congressman Cleaver. "It's clear that more must be done to combat the unconscionable price gouging we're seeing, and I'm calling on the ETA to be a part of the solution. Their members are in a unique position to protect vulnerable individuals from the evils of price gouging by adopting policies that disincentivize such behavior. I'm hopeful we can work together to immediately implement some common sense policies that will protect American consumers from exorbitant prices for life-saving supplies."
Congressman Cleaver has called for a response from the ETA by March 31. You can find the official letter here.
Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee; Chairman of the House Subcommittee on National Security, International Development, and Monetary Policy; member of the Select Committee on the Modernization of Congress; member of the Committee on Homeland Security; and a Senior Whip of the Democratic Caucus. For more information, please contact Matthew Helfant at 202-225-4535 or Matthew.Helfant@mail.house.gov A high-resolution photo of Congressman Cleaver is available here.
