Rep. Cleaver Introduces Legislation To Combat Price Gouging During National Crises

(Washington, D.C.) – Today, United States Representative Emanuel Cleaver, II (D-MO) introduced H.R. 6457, the Disaster and Emergency Pricing Abuse Prevention Act, to combat predatory price gouging tactics, which have surged during the coronavirus pandemic. Cleaver's bill would prohibit excessive and unjustified price increases in the sale of essential goods and services in anticipation of, during, or immediately following a pandemic, natural disaster, or state of emergency. Senator Amy Klobuchar (D-MN) has sponsored and introduced the same bill in the U.S. Senate.

"We often try to hammer down on price gouging as it is ongoing during a catastrophe," said Congressman Cleaver. "Whether it's a pandemic or a hurricane, national emergencies are going to happen, and scammers will try to profit from them. Therefore, we need a law that protects consumers from predatory price gougers who pop up during times of turmoil, instead of playing whack-a-mole every time a crisis emerges. I want to thank Senator Klobuchar for her leadership on this common sense bill and working with me to protect American consumers from exorbitant prices on critical supplies during this pandemic, as well as any other crisis that may arise in the future."

"The coronavirus pandemic has put incredible stress on consumers and we must make sure that they can afford essential goods and services," Senator Klobuchar said. "The Disaster and Emergency Pricing Abuse Prevention Act would help ensure that people are not taken advantage of and that price gouging is prohibited during a state of emergency like now. All consumers should have access to the products and services they need to protect their families at fair, uninflated prices."

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, in anticipation of, or immediately following a natural disaster, pandemic or state of emergency.
• Establish a national price gouging hotline for consumers to report nefarious actors
• Consider prices unconscionable if the crisis prices exceeds the pre-crisis price by more than 20%, except when the price increase is a product of an increase in the seller's costs.
• Apply to goods and services that may be used to preserve and protect the health and safety of people from any potential harms resulting from a pandemic, natural disaster, or a state of emergency.
• Apply potential civil penalties of up to $10,000 per violation, as well as injunctions.

"I believe irreversibly in capitalism, but price gouging is nothing more than exploitation and extortion during a catastrophe," said Congressman Cleaver. "Our country is blessed to have great manufacturers. During a national emergency, the best of them make good while a select few try to make gazillions. The Disaster and Emergency Pricing Abuse Prevention Act will go a long way in helping us identify and root out the select few who would choose to take advantage of their fellow Americans in a time of dire need."

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.