H.R. 2427 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Energy and Commerce, Mar 27, 2025
What this bill does
In plain words · AI-written from the official summaryLimits price increases after major disasters
When a president declares a major disaster or emergency, this bill would prohibit businesses from raising prices too much on essential goods and services like food, supplies, and lodging for 30 days. For repairs and rebuilding, the restriction lasts 180 days. Specifically, most items can't go up more than 10% above pre-disaster prices, and new offerings can't exceed 50% above the seller's cost. The Federal Trade Commission would enforce these rules, and states or individuals could also sue violators.
How it affects you
If you live in an area hit by a major disaster, this bill could help protect you from sudden price spikes on necessities while you're trying to recover. Businesses would face penalties for price gouging, and money collected from violations would go toward helping affected communities rebuild.
Read the official summary (Introduced in House, Mar 27, 2025)
Stop Disaster Price Gouging Act
This 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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 2427
A BILL
Stop Disaster Price Gouging Act
Sponsor: Rep. Laura Friedman (D-CA-30) · Introduced Mar 27, 2025 · Emergency Management · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 27, 2025: “Referred to the House Committee on Energy and Commerce.”