Congressman Sander Levin

Cracking Down on Gasoline Price Gouging

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In the face of record prices at the pump, Congress has begun a series of hearings to address rising gas prices - focusing on the burdens on American families and businesses, exploring anti-competitive practices in the oil and gasoline industry, and getting to the causes and solutions.

On May 23, the House of Representatives voted 284 to 141 to approve the Federal Price Gouging Prevention Act [H.R. 1252] to give the Federal Trade Commission (FTC) explicit authority to investigate and punish gasoline profiteers.

There is currently no federal law against price gouging. Because the federal government does not even have a clear definition of what price gouging is, the Federal Trade Commission (FTC) can do little more than study the issue. Studies are not sufficient. Congress must provide real tools to investigate and crack down on price gouging.

H.R. 1252 prohibits the wholesale and retail sale of gasoline at prices that are unconscionably excessive and would require gas gougers to pay triple damages, or $3 million, for violations of the law. The Bush Administration has indicated that the President may veto the bill.