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Managing America: Energy

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Week Ending May 25, 2006

H.R.1252 To protect consumers from price-gouging of gasoline and other fuels, and for other purposes.

Any effort to sell crude oil, gasoline, natural gas or petroleum distillates at an unconscionably high price is curtailed with increased term limits for the offense. The bill also requires that amounts collected from fines and penalties will be deposited in the Treasury in the Consumer Relief Trust Fund for providing energy to low-income Americans.

Unconscionably excessive pricing means unconscionably excessive or reveals the seller is taking unfair advantage of unusual market conditions or an emergency to increase prices unreasonably. The excessive status would be based on a gross disparity between the price of crude, gas, or petroleum distillate and the average price it was offered for sale in the preceding 30 days. Also indicative of gouging is the amount grossly exceeding prices charged for the same products in the same geographical area.

To be considered is whether or not the price charged reasonably reflects additional costs not within control of the seller.

Any attempts to manipulate or deceive the market is unlawful.

The FTC will investigate allegations of gouging and will give priority to companies with total US wholesale or retail sales in excess of $500 million per year. State attorney generals will prosecute through civil action whenever it is determined that the state residents are being threatened. The FTC may intervene in the State actions to be heard, file petitions for appeal.

Fines for price gouging are up to 3 times the amount of profits made from the gouging or a fine of no more than $3 million. Multiple offenses and harm caused will draw the higher penalties. A corporation could be fined up to $150 million if the company spreads false, deceiving information.

The FTC is directed to disseminate information about the availability and prices of wholesale crude oil, gasoline, etcetera and assure that consumers and competitive markets are protected from the adverse effects of potential collusion or other anticompetitive behaviors from untimely public disclosures of that data. Data that would be detrimental to the operation of an effective market of system security may be withheld.

Sponsor:  Rep. Bart Stupak D-MI-1^st)

Vote: Passed House 284 to 141 May 23, 2007 RC 404

Cost to the taxpayers: No discernible cost.

Earmark Certification:   Not applicable to this bill

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No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)