| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2427 |
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| 5 | 5 | | To prohibit price gouging as an unfair and deceptive act or practice during |
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| 6 | 6 | | a major disaster or emergency, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | MARCH27, 2025 |
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| 9 | 9 | | Ms. F |
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| 10 | 10 | | RIEDMAN(for herself and Mr. SHERMAN) introduced the following bill; |
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| 11 | 11 | | which was referred to the Committee on Energy and Commerce |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To prohibit price gouging as an unfair and deceptive act |
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| 14 | 14 | | or practice during a major disaster or emergency, and |
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| 15 | 15 | | for other purposes. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘Stop Disaster Price 4 |
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| 20 | 20 | | Gouging Act’’. 5 |
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| 21 | 21 | | SEC. 2. PROHIBITION ON PRICE GOUGING. 6 |
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| 22 | 22 | | (a) P |
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| 23 | 23 | | ROHIBITION.— 7 |
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| 24 | 24 | | (1) I |
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| 25 | 25 | | N GENERAL.—Except as provided in para-8 |
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| 26 | 26 | | graph (2), during the period described below after 9 |
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| 27 | 27 | | the date on which the President declares a major 10 |
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| 29 | 29 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 30 | 30 | | •HR 2427 IH |
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| 31 | 31 | | disaster or emergency under section 401 or 501 of 1 |
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| 32 | 32 | | the Robert T. Stafford Disaster Relief and Emer-2 |
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| 33 | 33 | | gency Assistance Act (42 U.S.C. 5170; 5191) and 3 |
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| 34 | 34 | | within the area in which the disaster or emergency 4 |
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| 35 | 35 | | is declared a person— 5 |
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| 36 | 36 | | (A) may not increase the price as of the 6 |
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| 37 | 37 | | day before such date by more than 10 per-7 |
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| 38 | 38 | | cent— 8 |
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| 39 | 39 | | (i) with respect to essential consumer 9 |
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| 40 | 40 | | goods and services, hotel lodging, and resi-10 |
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| 41 | 41 | | dential rental properties, for a period of 30 11 |
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| 42 | 42 | | days; and 12 |
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| 43 | 43 | | (ii) with respect to repair or recon-13 |
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| 44 | 44 | | struction services, for a period of 180 days; 14 |
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| 45 | 45 | | and 15 |
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| 46 | 46 | | (B) may not charge a price for essential 16 |
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| 47 | 47 | | consumer goods and services, hotel lodging, res-17 |
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| 48 | 48 | | idential rental property, or reconstruction serv-18 |
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| 49 | 49 | | ices that is more than 50 percent greater than 19 |
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| 50 | 50 | | the cost to the person for 30 days after such 20 |
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| 51 | 51 | | date if the person did not charge that price be-21 |
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| 52 | 52 | | fore such date. 22 |
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| 53 | 53 | | (2) E |
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| 54 | 54 | | XCEPTION.—The prohibition described in 23 |
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| 55 | 55 | | paragraph (1) does not apply as follows: 24 |
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| 56 | 56 | | (A) If the increased price— 25 |
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| 59 | 59 | | •HR 2427 IH |
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| 60 | 60 | | (i) is— 1 |
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| 61 | 61 | | (I) directly attributable to addi-2 |
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| 62 | 62 | | tional cost paid by the person to a 3 |
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| 63 | 63 | | supplier of the goods or for labor or 4 |
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| 64 | 64 | | materials used to provide services; and 5 |
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| 65 | 65 | | (II) is not more than 10 percent 6 |
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| 66 | 66 | | greater than the total of the cost to 7 |
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| 67 | 67 | | the person plus the markup custom-8 |
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| 68 | 68 | | arily applied by that seller for that 9 |
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| 69 | 69 | | good or service in the usual course of 10 |
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| 70 | 70 | | business immediately prior to the 11 |
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| 71 | 71 | | onset of the major disaster or emer-12 |
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| 72 | 72 | | gency; or 13 |
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| 73 | 73 | | (ii) is directly attributable to tariffs or 14 |
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| 74 | 74 | | national trade policies. 15 |
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| 75 | 75 | | (B) For a hotel or motel rate, if the in-16 |
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| 76 | 76 | | creased price is attributable to seasonable ad-17 |
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| 77 | 77 | | justments that are regularly scheduled. 18 |
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| 78 | 78 | | (C) For a rental rate, if the increased price 19 |
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| 79 | 79 | | is directly attributable to additional costs for 20 |
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| 80 | 80 | | repairs or additions beyond normal maintenance 21 |
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| 81 | 81 | | that were amortized over the rental term that 22 |
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| 82 | 82 | | caused the rent to be increased greater than 10 23 |
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| 83 | 83 | | percent or that an increase was contractually 24 |
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| 86 | 86 | | •HR 2427 IH |
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| 87 | 87 | | agreed to by the tenant prior to the disaster or 1 |
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| 88 | 88 | | emergency. 2 |
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| 89 | 89 | | (b) E |
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| 90 | 90 | | NFORCEMENT BY FEDERALTRADECOMMIS-3 |
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| 91 | 91 | | SION.— 4 |
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| 92 | 92 | | (1) U |
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| 93 | 93 | | NFAIR OR DECEPTIVE ACTS OR PRAC -5 |
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| 94 | 94 | | TICES.—A violation of subsection (a) or a regulation 6 |
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| 95 | 95 | | promulgated under such subsection shall be treated 7 |
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| 96 | 96 | | as a violation of a regulation under section 8 |
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| 97 | 97 | | 18(a)(1)(B) of the Federal Trade Commission Act 9 |
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| 98 | 98 | | (15 U.S.C. 57a(a)(1)(B)) regarding unfair or decep-10 |
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| 99 | 99 | | tive acts or practices. 11 |
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| 100 | 100 | | (2) P |
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| 101 | 101 | | OWERS OF COMMISSION .—The Federal 12 |
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| 102 | 102 | | Trade Commission shall enforce subsection (a) and 13 |
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| 103 | 103 | | any regulation promulgated under such subsection in 14 |
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| 104 | 104 | | the same manner, by the same means, and with the 15 |
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| 105 | 105 | | same jurisdiction, powers, and duties as though all 16 |
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| 106 | 106 | | applicable terms and provisions of the Federal Trade 17 |
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| 107 | 107 | | Commission Act (15 U.S.C. 41 et seq.) were incor-18 |
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| 108 | 108 | | porated into and made a part of this Act. Any per-19 |
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| 109 | 109 | | son who violates such subsection or a regulation pro-20 |
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| 110 | 110 | | mulgated under such subsection shall be subject to 21 |
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| 111 | 111 | | the penalties described in subsection (e) and entitled 22 |
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| 112 | 112 | | to the privileges and immunities provided in the 23 |
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| 113 | 113 | | Federal Trade Commission Act. 24 |
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| 114 | 114 | | (c) A |
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| 115 | 115 | | CTIONS BYSTATES.— 25 |
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| 117 | 117 | | ssavage on LAPJG3WLY3PROD with BILLS 5 |
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| 118 | 118 | | •HR 2427 IH |
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| 119 | 119 | | (1) IN GENERAL.—In any case in which the at-1 |
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| 120 | 120 | | torney general of a State, or an official or agency of 2 |
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| 121 | 121 | | a State, has reason to believe that an interest of the 3 |
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| 122 | 122 | | residents of such State has been or is threatened or 4 |
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| 123 | 123 | | adversely affected by an act or practice in violation 5 |
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| 124 | 124 | | of subsection (a) or a regulation promulgated under 6 |
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| 125 | 125 | | such subsection, the State, as parens patriae, may 7 |
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| 126 | 126 | | bring a civil action on behalf of the residents of the 8 |
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| 127 | 127 | | State in an appropriate State court or an appro-9 |
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| 128 | 128 | | priate district court of the United States to— 10 |
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| 129 | 129 | | (A) enjoin such act or practice; 11 |
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| 130 | 130 | | (B) enforce compliance with such sub-12 |
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| 131 | 131 | | section or such regulation; 13 |
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| 132 | 132 | | (C) obtain damages, restitution, or other 14 |
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| 133 | 133 | | compensation on behalf of residents of the 15 |
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| 134 | 134 | | State; or 16 |
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| 135 | 135 | | (D) obtain such other legal and equitable 17 |
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| 136 | 136 | | relief as the court may consider to be appro-18 |
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| 137 | 137 | | priate. 19 |
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| 138 | 138 | | (2) N |
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| 139 | 139 | | OTICE.—Before filing an action under this 20 |
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| 140 | 140 | | subsection, the attorney general, official, or agency 21 |
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| 141 | 141 | | of the State involved shall provide to the Commis-22 |
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| 142 | 142 | | sion a written notice of such action and a copy of 23 |
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| 143 | 143 | | the complaint for such action. If the attorney gen-24 |
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| 144 | 144 | | eral, official, or agency determines that it is not fea-25 |
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| 146 | 146 | | ssavage on LAPJG3WLY3PROD with BILLS 6 |
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| 147 | 147 | | •HR 2427 IH |
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| 148 | 148 | | sible to provide the notice described in this para-1 |
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| 149 | 149 | | graph before the filing of the action, the attorney 2 |
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| 150 | 150 | | general, official, or agency shall provide written no-3 |
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| 151 | 151 | | tice of the action and a copy of the complaint to the 4 |
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| 152 | 152 | | Commission immediately upon the filing of the ac-5 |
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| 153 | 153 | | tion. 6 |
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| 154 | 154 | | (3) A |
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| 155 | 155 | | UTHORITY OF FEDERAL TRADE COMMIS -7 |
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| 156 | 156 | | SION.— 8 |
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| 157 | 157 | | (A) I |
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| 158 | 158 | | N GENERAL.—On receiving notice 9 |
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| 159 | 159 | | under paragraph (2) of an action under this 10 |
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| 160 | 160 | | subsection, the Commission shall have the 11 |
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| 161 | 161 | | right— 12 |
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| 162 | 162 | | (i) to intervene in the action; 13 |
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| 163 | 163 | | (ii) upon so intervening, to be heard 14 |
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| 164 | 164 | | on all matters arising therein; and 15 |
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| 165 | 165 | | (iii) to file petitions for appeal. 16 |
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| 166 | 166 | | (B) L |
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| 167 | 167 | | IMITATION ON STATE ACTION WHILE 17 |
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| 168 | 168 | | FEDERAL ACTION IS PENDING .—If the Commis-18 |
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| 169 | 169 | | sion or the Attorney General of the United 19 |
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| 170 | 170 | | States has instituted a civil action for violation 20 |
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| 171 | 171 | | of subsection (a) or a regulation promulgated 21 |
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| 172 | 172 | | under such subsection (referred to in this sub-22 |
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| 173 | 173 | | paragraph as the ‘‘Federal action’’), no State 23 |
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| 174 | 174 | | attorney general, official, or agency may bring 24 |
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| 175 | 175 | | an action under this subsection during the 25 |
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| 177 | 177 | | ssavage on LAPJG3WLY3PROD with BILLS 7 |
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| 178 | 178 | | •HR 2427 IH |
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| 179 | 179 | | pendency of the Federal action against any de-1 |
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| 180 | 180 | | fendant named in the complaint in the Federal 2 |
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| 181 | 181 | | action for any violation of such subsection or 3 |
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| 182 | 182 | | regulation alleged in such complaint. 4 |
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| 183 | 183 | | (4) R |
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| 184 | 184 | | ULE OF CONSTRUCTION .—For purposes of 5 |
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| 185 | 185 | | bringing a civil action under this subsection, nothing 6 |
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| 186 | 186 | | in this Act shall be construed to prevent an attorney 7 |
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| 187 | 187 | | general, official, or agency of a State from exercising 8 |
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| 188 | 188 | | the powers conferred on the attorney general, offi-9 |
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| 189 | 189 | | cial, or agency by the laws of such State to conduct 10 |
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| 190 | 190 | | investigations, administer oaths and affirmations, or 11 |
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| 191 | 191 | | compel the attendance of witnesses or the production 12 |
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| 192 | 192 | | of documentary and other evidence. 13 |
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| 193 | 193 | | (d) P |
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| 194 | 194 | | RIVATERIGHT OFACTION.— 14 |
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| 195 | 195 | | (1) I |
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| 196 | 196 | | N GENERAL.—A person injured by an act 15 |
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| 197 | 197 | | or practice in violation of subsection (a) or a regula-16 |
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| 198 | 198 | | tion promulgated under such subsection may bring 17 |
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| 199 | 199 | | in an appropriate State court or an appropriate dis-18 |
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| 200 | 200 | | trict court of the United States— 19 |
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| 201 | 201 | | (A) an action to enjoin the violation; 20 |
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| 202 | 202 | | (B) an action to recover damages for ac-21 |
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| 203 | 203 | | tual monetary loss from the violation; or 22 |
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| 204 | 204 | | (C) both such actions. 23 |
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| 205 | 205 | | (2) W |
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| 206 | 206 | | ILLFUL VIOLATIONS.—If the court finds 24 |
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| 207 | 207 | | that the defendant acted willfully in committing a 25 |
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| 209 | 209 | | ssavage on LAPJG3WLY3PROD with BILLS 8 |
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| 210 | 210 | | •HR 2427 IH |
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| 211 | 211 | | violation described in paragraph (1), the court may, 1 |
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| 212 | 212 | | in its discretion, increase the amount of the award 2 |
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| 213 | 213 | | to an amount equal to not more than 3 times the 3 |
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| 214 | 214 | | amount available under paragraph (1)(B). 4 |
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| 215 | 215 | | (3) C |
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| 216 | 216 | | OSTS AND ATTORNEY ’S FEES.—The court 5 |
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| 217 | 217 | | shall award to a prevailing plaintiff in an action 6 |
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| 218 | 218 | | under this subsection the costs of such action and 7 |
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| 219 | 219 | | reasonable attorney’s fees, as determined by the 8 |
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| 220 | 220 | | court. 9 |
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| 221 | 221 | | (4) L |
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| 222 | 222 | | IMITATION.—An action may be com-10 |
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| 223 | 223 | | menced under this subsection not later than 2 years 11 |
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| 224 | 224 | | after the date on which the person first discovered 12 |
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| 225 | 225 | | or had a reasonable opportunity to discover the vio-13 |
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| 226 | 226 | | lation. 14 |
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| 227 | 227 | | (5) N |
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| 228 | 228 | | ONEXCLUSIVE REMEDY .—The remedy pro-15 |
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| 229 | 229 | | vided by this subsection shall be in addition to any 16 |
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| 230 | 230 | | other remedies available to the person. 17 |
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| 231 | 231 | | (e) A |
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| 232 | 232 | | MOUNT OFCIVILPENALTIES.— 18 |
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| 233 | 233 | | (1) I |
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| 234 | 234 | | N GENERAL.—For purposes of the pen-19 |
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| 235 | 235 | | alties described in subsection (b), the amount deter-20 |
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| 236 | 236 | | mined under this paragraph is the amount cal-21 |
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| 237 | 237 | | culated by multiplying the number of violations of 22 |
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| 238 | 238 | | subsection (a) by an amount not greater than 23 |
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| 239 | 239 | | $25,000. Each violation shall be treated as a sepa-24 |
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| 240 | 240 | | rate violation. 25 |
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| 243 | 243 | | •HR 2427 IH |
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| 244 | 244 | | (2) MAXIMUM TOTAL LIABILITY .—Notwith-1 |
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| 245 | 245 | | standing the number of actions which may be 2 |
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| 246 | 246 | | brought against a person under subsection (b), the 3 |
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| 247 | 247 | | total amount of civil penalties assessed against such 4 |
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| 248 | 248 | | person for all violations of subsection (a) and the 5 |
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| 249 | 249 | | regulations promulgated under such subsection re-6 |
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| 250 | 250 | | sulting from the same or related acts or practices 7 |
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| 251 | 251 | | may not exceed $25,000. 8 |
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| 252 | 252 | | (3) A |
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| 253 | 253 | | DJUSTMENT FOR INFLATION .—Beginning 9 |
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| 254 | 254 | | on the date that the Consumer Price Index is first 10 |
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| 255 | 255 | | published by the Bureau of Labor Statistics that is 11 |
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| 256 | 256 | | at least 1 year after the date of the enactment of 12 |
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| 257 | 257 | | this Act, and each year thereafter, the amount speci-13 |
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| 258 | 258 | | fied in paragraphs (1) and (2) shall be increased by 14 |
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| 259 | 259 | | the percentage increase, if any, in the Consumer 15 |
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| 260 | 260 | | Price Index published on such date from the Con-16 |
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| 261 | 261 | | sumer Price Index published the previous year. 17 |
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| 262 | 262 | | (4) F |
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| 263 | 263 | | UNDING FOR DISASTER ZONES .—Any 18 |
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| 264 | 264 | | amount recovered under subsection (b) shall be de-19 |
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| 265 | 265 | | posited into a fund to assist communities located in 20 |
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| 266 | 266 | | an area affected by a major disaster or emergency 21 |
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| 267 | 267 | | declared by the President under section 401 or 501 22 |
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| 268 | 268 | | of the Robert T. Stafford Disaster Relief and Emer-23 |
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| 269 | 269 | | gency Assistance Act (42 U.S.C. 5170; 5191). 24 |
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| 270 | 270 | | (f) D |
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| 271 | 271 | | EFINITIONS.—In this section: 25 |
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| 273 | 273 | | ssavage on LAPJG3WLY3PROD with BILLS 10 |
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| 274 | 274 | | •HR 2427 IH |
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| 275 | 275 | | (1) COMMISSION.—The term ‘‘Commission’’ 1 |
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| 276 | 276 | | means the Federal Trade Commission. 2 |
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| 277 | 277 | | (2) E |
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| 278 | 278 | | SSENTIAL CONSUMER GOODS AND SERV -3 |
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| 279 | 279 | | ICES.—The term ‘‘essential consumer goods and 4 |
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| 280 | 280 | | services’’ means goods and services that are nec-5 |
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| 281 | 281 | | essary for survival and recovery during and after a 6 |
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| 282 | 282 | | major disaster or emergency and include any of the 7 |
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| 283 | 283 | | following: 8 |
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| 284 | 284 | | (A) Food and drink, including food and 9 |
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| 285 | 285 | | drink for animals. 10 |
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| 286 | 286 | | (B) Emergency supplies such as water, 11 |
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| 287 | 287 | | generators, flashlights, radios, batteries, can-12 |
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| 288 | 288 | | dles, blankets, soap, diapers, temporary shel-13 |
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| 289 | 289 | | ters, tape, toiletries, plywood, nails, and ham-14 |
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| 290 | 290 | | mers. 15 |
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| 291 | 291 | | (C) Medical supplies such as prescription 16 |
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| 292 | 292 | | and non prescription medications, bandages, 17 |
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| 293 | 293 | | gauze, isopropyl alcohol, and antibacterial prod-18 |
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| 294 | 294 | | ucts. 19 |
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| 295 | 295 | | (D) Home heating oil. 20 |
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| 296 | 296 | | (E) Building and construction materials 21 |
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| 297 | 297 | | such as lumber, construction tools, and win-22 |
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| 298 | 298 | | dows. 23 |
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| 299 | 299 | | (F) Transportation. 24 |
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| 300 | 300 | | (G) Freight. 25 |
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| 303 | 303 | | •HR 2427 IH |
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| 304 | 304 | | (H) Storage services. 1 |
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| 305 | 305 | | (I) Gasoline and other motor fuels. 2 |
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| 306 | 306 | | (g) R |
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| 307 | 307 | | ELATION TOSTATELAW.—Nothing in this Act 3 |
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| 308 | 308 | | may be construed to preempt any provision of State law 4 |
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| 309 | 309 | | that does not conflict with this Act. 5 |
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| 310 | 310 | | Æ |
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