When a president declares a major disaster or emergency — a federal designation covering hurricanes, wildfires, and similar crises — sellers in the affected area can currently charge whatever the market bears. The Stop Disaster Price Gouging Act would cap price increases on essential consumer goods (food, water, generators, medications, fuel), hotel lodging, and residential rentals at 10% above pre-disaster levels for 30 days after the declaration, and cap repair and reconstruction services at 10% for 180 days. Sellers who didn't previously offer a good or service at a given price cannot charge more than 50% above their own cost for the first 30 days. Violations would be enforced by the Federal Trade Commission, with civil penalties up to $25,000 per violation — with recovered funds directed to disaster-affected communities. Consumers injured by price gouging may also sue directly for damages, with courts able to award triple damages for willful violations and attorney's fees to prevailing plaintiffs.
Average Household Impact
- Disaster-period price cap — Essential goods, lodging, and residential rentals capped at 10% increase above pre-disaster levels for 30 days
- Reconstruction price cap — Repair and rebuild service prices capped at 10% above pre-disaster levels for 180 days
Civil Liberties
- Civil-suit access — Consumers may sue price gougers directly for damages in state or federal court
- Damages multiplier — Court may award up to triple damages for willful violations
- Attorney's fees — Prevailing plaintiffs recover reasonable litigation costs
Congressional Summary
Stop Disaster Price Gouging ActThis bill prohibits certain price increases following presidentially declared major disasters or emergencies, requires the Federal Trade Commission (FTC) to enforce the prohibition, and authorizes states and private parties to bring legal action for violations.The bill prohibits entities from increasing prices in affected areas by more than 10% above pre-disaster prices for 30 days after the declaration date for essential consumer goods and services (e.g., food, emergency supplies, and transportation), hotel lodging, and residential rental properties. For repair or reconstruction services this prohibition lasts 180 days. Also, for 30 days, entities may not charge more than 50% above their cost for such goods, services, or housing if they did not charge that price pre-disaster. The bill provides exceptions, including for higher costs.Violations of the prohibition are subject to specified civil penalties. Amounts recovered by the FTC must be used to assist communities in areas affected by a major disaster or emergency. Additionally, the bill authorizes states, with prior notice to the FTC, to bring a civil action in state or federal court when their residents are threatened or affected by a violation of the bill. It also authorizes private parties to bring an action if commenced within two years after discovering the violation.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-03-27
- Date Added
- 2026-06-25
- Source
- Congress.gov →
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