109th CONGRESS
2d Session
H. R. 5253
AN ACT
To prohibit price gouging in the sale of gasoline, diesel fuel,
crude oil, and home heating oil, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Energy Price Protection Act of 2006'.
SEC. 2. GASOLINE PRICE GOUGING PROHIBITED.
(1) UNFAIR AND DECEPTIVE ACT OR PRACTICE- It shall be an unfair or deceptive
act or practice in violation of section 5 of the Federal Trade Commission
Act for any person to sell crude oil, gasoline, diesel fuel, home heating
oil, or any biofuel at a price that constitutes price gouging as defined
by rule pursuant to subsection (b).
(2) DEFINITION- For purposes of this subsection, the term `biofuel' means
any fuel containing any organic matter that is available on a renewable
or recurring basis, including agricultural crops and trees, wood and wood
wastes and residues, plants (including aquatic plants), grasses, residues,
fibers, and animal wastes, municipal wastes, and other waste materials.
(1) IN GENERAL- Not later than 6 months after the date of the enactment
of this Act, the Federal Trade Commission shall promulgate, in accordance
with section 553 of title 5, United States Code, any rules necessary for
the enforcement of this section.
(2) CONTENTS- Such rules--
(A) shall define `price gouging', `retail sale', and `wholesale sale'
for purposes of this Act; and
(B) shall be consistent with the requirements for declaring unfair acts
or practices in section 5(n) of the Federal Trade Commission Act (15
U.S.C. 45(n)).
(1) IN GENERAL- Except as provided in subsection (d), a violation of subsection
(a) shall be treated as a violation of a rule defining an unfair or deceptive
act or practice prescribed under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission
shall enforce this Act in the same manner, by the same means, and with
the same jurisdiction as though all applicable terms and provisions of
the Federal Trade Commission Act were incorporated into and made a part
of this Act.
(2) EXCLUSIVE ENFORCEMENT- Notwithstanding any other provision of law,
no person, State, or political subdivision of a State, other than the
Federal Trade Commission or the Attorney General of the United States
to the extent provided for in section 5 of the Federal Trade Commission
Act or the attorney general of a State as provided by subsection (d),
shall have any authority to enforce this Act or any rule prescribed pursuant
to this Act.
(d) Enforcement by State Attorneys General-
(1) CIVIL ACTION- In any case in which the attorney general of a State
has reason to believe that an interest of the residents of that State
has been or is threatened or adversely affected by any person who violates
subsection (a), the attorney general, as parens patriae, may bring a civil
action on behalf of the residents of the State in a district court of
the United States of appropriate jurisdiction--
(A) to enjoin further violation of such section by the defendant;
(B) to compel compliance with such section; or
(C) to impose a civil penalty under subsection (e).
(2) INTERVENTION BY THE FTC-
(A) NOTICE AND INTERVENTION- The State shall provide prior written notice
of any action under paragraph (1) to the Federal Trade Commission and
provide the Commission with a copy of its complaint, except in any case
in which such prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting such action. The
Commission shall have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on all matters arising therein;
and
(iii) to file petitions for appeal.
(B) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION IS PENDING- If the
Commission has instituted a civil action for violation of this Act,
no attorney general of a State may bring an action under this subsection
during the pendency of that action against any defendant named in the
complaint of the Commission for any violation of this Act alleged in
the complaint.
(3) CONSTRUCTION WITH RESPECT TO POWERS CONFERRED BY STATE LAW- For purposes
of bringing any civil action under paragraph (1), nothing in this Act
shall be construed to prevent an attorney general of a State from exercising
the powers conferred on the attorney general by the laws of that State.
(1) IN GENERAL- Notwithstanding any civil penalty that otherwise applies
to a violation of a rule referred to in subsection (c)(1), any person
who violates subsection (a) shall be liable for a civil penalty under
this subsection.
(2) AMOUNT- The amount of a civil penalty under this subsection shall
be an amount equal to--
(A) in the case of a wholesale sale in violation of subsection (a),
the sum of--
(i) 3 times the difference between--
(I) the total amount charged in the wholesale sale; and
(II) the total amount that would be charged in such a wholesale
sale made at the wholesale fair market price; plus
(ii) an amount not to exceed $3,000,000 per day of a continuing violation;
or
(B) in the case of a retail sale in violation of subsection (a), 3 times
the difference between--
(i) the total amount charged in the sale; and
(ii) the total amount that would be charged in such a sale at the
fair market price for such a sale.
(3) DEPOSIT- Of the amount of any civil penalty imposed under this section
with respect to any sale in violation of subsection (a) to a person that
resides in a State, the portion of such amount that is determined under
subparagraph (A)(i) or (B) (or both) of paragraph (2) shall be deposited
into--
(A) any account or fund established under the laws of the State and
used for paying compensation to consumers for violations of State consumer
protection laws; or
(B) in the case of a State for which no such account or fund is establish
by State law, into the general fund of the State treasury.
(1) IN GENERAL- In addition to any other penalty that applies, a violation
of subsection (a) is punishable--
(A) in the case of a wholesale sale in violation of subsection (a),
by a fine of not more than $150,000,000, imprisonment for not more than
2 years, or both; or
(B) in the case of a retail sale in violation of subsection (a), by
a fine of not more than $2,000,000, imprisonment for not more than 2
years, or both.
(2) ENFORCEMENT- The criminal penalty provided by paragraph (1) may be
imposed only pursuant to a criminal action brought by the Attorney General
or other officer of the Department of Justice, or any attorney specially
appointed by the Attorney General, in accordance with section 515 of title
28, United States Code.
Passed the House of Representatives May 3, 2006.
Attest:
Clerk.
109th CONGRESS
2d Session
H. R. 5253
AN ACT
To prohibit price gouging inD the sale of gasoline, diesel fuel, crude
oil, and home heating oil, and for other purposes.
END
