Lawmakers press FTC chair on federal price gouging ban
A group of mostly Democrats pressed Federal Trade Commission (FT) Chair Lina Khan this week for more information on how a federal price gouging ban could help “hold bad actors accountable” in the event of major disasters like Hurricane Helene.
Sen. Elizabeth Warren (D-Mass.) and Rep. Hank Johnson (D-Ga.) led 11 lawmakers in signing onto the letter, including Sen. Bernie Sanders (I-Vt.) and Reps. Jan Schakowsky (D-Ill.), Cartwright (D-Pa.), Rosa DeLauro (D-Conn.), Maxwell Frost (D-Fla.), Pramila Jayapal (D-Wash.) and Frederica Wilson (D-Fla.).
In the letter, lawmakers cited efforts taken in dozens of states to tackle price gouging, including legislation and hotlines, while pointing to recent allegations of price gouging in North Carolina and South Carolina in the aftermath of Helene.
“In the two weeks since the hurricane made landfall, Florida and North Carolina activated state-specific price gouging hotlines, which allow consumers to report instances of suspected price gouging,” they wrote.
“Consumers are taking action to hold price gougers accountable: the North Carolina Attorney General’s Office has received nearly 200 complaints of price gouging in Helene’s aftermath, and South Carolina has received over 300 complaints," the letter reads.
The lawmakers said a federal price gouging law carried out by the FTC would “strengthen and standardize state-level efforts to combat price gouging.”
“Price gouging laws differ across states with regard to the time period when the restriction goes into effect and the time periods for which price gougers can be investigated and held accountable,” they wrote, arguing that a federal price gouging law “would provide the same consumer protections to all consumers, no matter where they live.”
They also said limits on jurisdiction at the state level could allow “larger distributors or companies further up the supply chain to escape liability,” while arguing a federal law could be key to confronting price gouging “by a supplier higher up in the supply chain or by a business operating in multiple states.”
“The current regulatory system forces state attorneys general to focus on smaller retailers operating within their state, who often are themselves victims of price gouging from larger suppliers,” they said, adding a federal ban could allow the FTC “to help state attorneys general target large, multi-state entities that may be engaged in price gouging,”
In the letter, lawmakers posed a series of questions for the FTC to answer by Oct. 23, including queries about the authorities the agency has to combat price gouging and the impact of a federal ban on state efforts.
The letter also copied Transportation Secretary Pete Buttigieg after his recent warning on “allegations of airline price-gouging seriously.”
“We are keeping a close eye on flights in and out of areas affected by Hurricane Milton to make sure airlines are not charging excessively increasing fares,” he wrote on social platform X earlier this week.
The calls come weeks after Vice President Kamala Harris pushed for a federal ban on “price gouging on food and groceries” on the campaign trail.
However, the idea has gotten pushback from critics like former President Trump, who panned the pitch as “socialist price controls,” though some experts have said such a proposal could help target big players that have the resources to evade crackdowns at the state level.
Date: |
Topics
-
Politics - The Hill
CVS, UnitedHealth press for FTC Chair Khan to be removed from PBM lawsuit
UnitedHealth and CVS Caremark are calling on a federal judge to disqualify Federal Trade Commission (FTC) Chair Lina Khan and two other commissioners from the agency’s lawsuit against the country's ...Yesterday -
Business - CNBC
FTC gets 'troubling reports' of price gouging for essentials ahead of Hurricane Milton
As Hurricane Milton approaches landfall in the U.S., the Biden administration is warning consumers of the risk of fraud and price gouging.Yesterday -
Politics - The Hill
Federal authorities warn of scams, price gouging as Hurricane Milton threatens Florida
Federal agencies are warning of heightened risk of scams and price gouging efforts as Hurricane Milton nears Florida’s western coast. The Justice Department (DOJ), the Federal Trade Commission ...Yesterday - Florida -
Top stories - NBC News
DOJ and FTC warn consumers of fraud and price gouging risks ahead of Hurricane Milton
As Hurricane Milton approached landfall in western Florida on Wednesday, the Biden administration warned consumers and businesses of the heightened risk of potential fraud, price gouging and ...Yesterday -
Politics - The Hill
Hurricane price gouging
Welcome to The Hill's Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Feds warn of price gouging as Milton nears As Hurricane Milton nears Florida’s ...Yesterday -
Politics - The Hill
PBMs seek removal of 'biased' FTC chair, commissioners
Click in for more news from The Hill {beacon} Health Care Health Care The Big Story PBMs seek removal of 'biased' FTC chair, commissioners The three biggest pharmacy benefit managers (PBMs) want ...17 hours ago -
Top stories - CBS News
Allegations of price gouging amid Milton evacuations
Multiple companies are being accused of price gouging as Florida residents try to evacuate ahead of Hurricane Milton. CBS News contributor Javier David has more.Yesterday -
Business - MarketWatch
Cigna seeks to disqualify FTC Chair Lina Khan from insulin case because of alleged bias
Cigna said that Khan, along with Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya, have made repeated and incorrect prejudgments that show bias against pharmacy-benefit managers.Yesterday
More from The Hill
-
Politics - The Hill
Mika Brzezinski knocks 'aging bulls--- artist' Trump over Detroit speech
MSNBC host Mika Brzezinski railed against former President Trump following his speech at the Detroit Economic Club this week. "I mean that’s like an epic weave that he talks about, but his weaves ...1 hour ago - Donald Trump -
Politics - The Hill
Democracy and reality are on the ballot
Trump’s hallucinatory vision of an economically ruined America besieged by rampaging criminals and pet-eating immigrants seems to grow more hysterical with every campaign rally.1 hour ago -
Politics - The Hill
Watch live: Walz campaigns in 'blue wall' battleground Michigan
Democratic vice presidential hopeful Minnesota Gov. Tim Walz is holding a campaign event Friday in Michigan, with just 25 days left until the election. Walz's latest visit to the state comes as ...1 hour ago -
Politics - The Hill
Walz blasts Trump for Detroit criticism: All these guys know is ‘how to manufacture bulls‑‑‑’
Minnesota Gov. Tim Walz (D) is poised to hammer former President Trump in Michigan Friday over remarks he made a day earlier bashing Detroit while in the Motor City. Walz, the Democratic nominee ...1 hour ago - Donald Trump -
Politics - The Hill
Harris lands on cover of Vogue
Vice President Harris appeared on the cover of Vogue Magazine's last edition ahead of Election Day, now less than a month away. The photo, shot by photographer Annie Leibovitz, appears next to the ...1 hour ago - Kamala Harris