Stop Disaster Price Gouging Act

Sponsor: Laura Friedman (Democratic-CA)March 27, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Energy and Commerce.

Caps prices on essential goods and services during disasters to limit price increases for consumers.

This bill would cap prices on essential goods and services during major disasters to limit price increases for consumers. It would set federal limits on how much businesses can raise prices for things like food, gas, and housing after a Presidential emergency declaration. This means people would not face extreme price hikes after a disaster.

What Would Change

Currently, no broad federal law exists against price gouging during major disasters, so rules vary by state. This bill would create a federal law. It would generally cap price increases at 10% for essential goods and services for 30 days, and for repair services for 180 days, after a Presidential disaster declaration. It would also allow individuals and states to take legal action against violators.

Key Provisions

Prohibits increasing prices on essential consumer goods and services, hotel lodging, and residential rental properties by over 10% for 30 days after a Presidential disaster declaration.
Prohibits increasing prices on repair or reconstruction services by over 10% for 180 days after a Presidential disaster declaration.
Prevents businesses from charging more than 50% above their cost for essential items if they did not charge that price before the disaster.
Allows price increases if they are directly due to additional costs paid to suppliers or for labor/materials, provided the markup is not more than 10% greater than customary.
Lets the Federal Trade Commission enforce these new price limits and create new rules.

View on Congress.gov

HR 2427 · 119th Congress · March 27, 2025 · AI Summary by gemini-2.5-flash · 9/10

Stop Disaster Price Gouging Act

What Would Change

Key Provisions

Lobbying Activity