Section by Section

Section 1. Short Title

    The bill may be cited as the “Federal Price Gouging Prevention Act”.

Section 2. Unconscionable Pricing of Gasoline and Other Petroleum Distillates During Emergencies

    Makes it unlawful during a period proclaimed by the President as an international crisis affecting the oil markets to sell gasoline or any other petroleum distillate at a price that: (1) is unconscionably excessive; or (2) indicates the seller is taking unfair advantage of circumstances related to an international crisis to increase prices unreasonably.

    Authorizes the President to issue a proclamation of an international crisis affecting oil markets.  The proclamation must state the geographic area covered, the gasoline or other petroleum distillate covered and the time period that it shall be in effect.

    The proclamation may not apply for a period of more than 30 consecutive days but may be renewed for consecutive periods, each not to exceed 30 days as the President determines appropriate.
    
    Authorizes a proclamation to include a period of up to one week preceding a reasonably foreseeable emergency.

    Sets forth factors to be considered in determining whether a violation of the bill has occurred.  These factors include whether the amount charged for gasoline or other petroleum distillate in an area covered by the proclamation issued by the President:

•    grossly exceeds the average price at which the applicable gasoline or other petroleum distillate was offered for sale by that person during the 30 days prior to such proclamation;
    
•    grossly exceeds the price at which the same or similar gasoline or other petroleum distillate was readily obtainable in the same area from other competing sellers during the same period;     
    
•    reasonably reflected additional costs, not within the control of that person, that were paid, incurred, or reasonably anticipated by that person, or reflected additional risks taken by that person to produce, distribute, obtain, or sell such product under the circumstances;
    
•    was substantially attributable to local, regional, national, or international market conditions; and
    
•    whether the quantity of gasoline or other petroleum distillate the person produced, distributed, or sold in an area covered by a proclamation issued by the President during a 30 day period following the issuance of such proclamation increased over the quantity that the person produced, distributed, or sold during the 30 days prior to such proclamation, taking into account usual seasonal demand variations.
    
        Subsection (b) contains definitions.  Defines the term “wholesale”, with respect to sales of gasoline or other petroleum distillates, to mean either truckload or smaller sales of gasoline or petroleum distillates where title transfers at a product terminal or a refiner, and dealer tank wagon sales of gasoline or petroleum distillates priced on a delivered basis to retail outlets.
    
        Defines the term “retail”, with respect to sales of gasoline or other petroleum distillates to include all sale to end users such as motorists as well as all direct sales to other end users such as agriculture, industry, residential and commercial consumers.
    
       
    Section 3.  Enforcement by the Federal Trade Commission.
    
        Empowers the Federal Trade Commission (FTC) to enforce this act and give priority to enforcement actions concerning companies with total United States wholesale or retail sales of gasoline and other petroleum distillates in excess of $10 billion per year.
    
        Section (b) states that any person who violates the bill with actual knowledge or knowledge fairly implied will be subject to a fine of not more than 3 times the amount of profits gained by such person or a fine of not more than $100 million.
    
        In assessing the penalty provided by subsection (a) each day of a continuing violation shall be considered a separate violation and the court shall take into consideration among other factors, the seriousness of the violation and the efforts of the person committing the violation to remedy the harm caused by the violation in a timely manner.  
    
    
    Section 4.  Criminal Penalties.
    
        Provides that any person who violates section 2 of the bill shall be fined an amount not to exceed $500 million.  The Attorney General will give priority to enforcement actions concerning companies with total United States wholesale or retail sales of gasoline and other petroleum distillates in excess of $10 billion a year.
    
    Section 5. Enforcement at Retail Level by State Attorneys General
    
        Provides that a state, as parens patriae, may bring a civil action in federal district court to enforce the unconscionable pricing prohibition of this Act, or to impose the civil penalties authorized by this Act, whenever the state’s attorney general has reason to believe that the interests of state residents have been or are being threatened or adversely affected by a violation of this Act, or a regulation under it, which involves a retail sale.
       
       
    Section 6. Effect on Other Laws
    
        Section (a) states that nothing in this act shall be construed to limit or affect the Federal Trade Commission’s authority to bring enforcement actions or take any other measure under the Federal Trade Commission Act.
    
    Section (b) declares that nothing in this Act preempts state law.