Cracking Down on Price Gouging Act

This bill, titled the "Cracking Down on Price Gouging Act," significantly amends the Defense Production Act of 1950 to enhance federal authority against price gouging. It explicitly prohibits selling or offering to sell materials or critical goods at prices that grossly exceed prevailing market prices or are unfairly excessive , expanding beyond the previous focus on hoarding. The legislation introduces a new definition for "unfairly excessive price," which is presumed to be a gross disparity if prices increase by 10 percent relative to pre-shortage levels. However, it provides exceptions for price increases resulting from legitimate business needs or additional costs beyond the seller's control. The bill also broadens the scope of materials covered, including "critical goods" experiencing an acute shortage due to various factors like disease, natural disasters, or supply-chain disruptions. These critical goods encompass consumer food items, essential medical supplies, and energy resources. Furthermore, the legislation establishes a specific penalty for violations of these price gouging prohibitions, imposing a fine of the greater of $20,000 or 300 percent of the revenue generated from the illegal activity.