Price Gouging Bill Passes House, Likely Faces A Stall In Senate

A bill passed the House on Thursday that cracks down on price gouging, specifically targeting the recent rise in gas and home-energy prices.

Reps. Katie Porter, D-Calif., and Kim Schrier, D-Wash., introduced the bill, titled "The Consumer Fuel Price Gouging Prevention Act." The bill, which passed with a 217-207 vote, is unlikely to pass a filibuster in the split Senate.

The bill gives President Joe Biden the ability to declare that it is against the law for energy companies to raise prices to "unconsciously excessive" levels. Then the Federal Trade Commission can investigate those engaging in the practice.

It is unclear what would qualify as "unconsciously excessive."

"Gas prices in my neighborhood were already high at $5/ gallon. Now, for no apparent reason, prices are up another 10% in the last week, at $5.50/ gallon . . . The Federal Trade Commission (FTC) needs to have the power to investigate and crack down when there is evidence of real gouging," Schrier said in a press release.

Porter added that she is a "proud capitalist." However, the rising gas prices that affect everyday people count as price gouging. She accused Big Oil executives of bragging about price gouging and purposefully keeping supplies low to make a profit.

"What we’re experiencing with fuel prices is the result of a broken market . . . They’re . . . squeezing families—and our entire economy—in the process," Porter said.

Not all Democrats agree that the bill solves price gouging. Rep. Stephanie Murphy, D-Fla., who suggests repealing former President Donald Trump's tariffs, proposed passing a bipartisan China competition bill, which she says would help curb inflation and unsnarl supply chains.

"This bill is a distraction that won’t actually address the problem. At worst, it could make the problem more severe. As economist Larry Summers put it, this legislation ‘can cause and contrive all sorts of shortages,'" Murphy said on the passing of the price gouging bill.

House Republican Whip Steve Scalise of Louisiana blamed high gas prices on the Biden administration and claims there is no evidence of price gouging.

The bill is "an attempt by the Majority to distract and shift blame . . . despite no evidence of price gouging," Scalise said.

Senate Republicans have said they would not vote in favor of the bill.