Cracking Down on Price Gouging Act

This bill, titled the Cracking Down on Price Gouging Act, would amend the Defense Production Act of 1950 to tighten prohibitions on price gouging for materials and “critical goods” during shortages. It expands the Act’s scope to cover not only hoarding but also selling or offering to sell at prices that grossly exceed prevailing market prices, or at an otherwise unfairly excessive price, in the trade area. The measure defines what counts as an “unfairly excessive” price, including a presumptive threshold of a 10% price increase relative to the price at the time the material was designated scarce or the onset of an acute shortage. The bill also sets out definitions for “acute shortage” and “critical good” and lays out penalties for willful violations. In short, it aims to deter price gouging during emergencies by creating clearer price standards and stronger penalties. The bill would take effect within the Defense Production Act framework and authorize penalties for violations of the new price-gouging prohibitions, with enforcement aligned to the President’s designation of scarce materials and acute shortages. It targets a broad set of essential items and services, including foods, medical supplies, energy resources, and other goods essential to public health and welfare.