Summary of HR 2427: Stop Disaster Price Gouging Act

Purpose and Intent

The Stop Disaster Price Gouging Act (HR 2427) aims to protect consumers from price gouging during times of disaster. The bill seeks to establish clear regulations that prevent businesses from significantly increasing prices on essential goods and services when a disaster is declared, ensuring that individuals and families can access necessary resources without facing exorbitant costs.

Key Provisions

• Price Gouging Definition: The bill defines price gouging as any increase in the price of essential goods and services that exceeds a specified percentage above the average price charged during a defined period before the disaster declaration.

• Essential Goods and Services: The legislation identifies essential goods and services that are subject to price gouging regulations, including but not limited to food, water, fuel, medical supplies, and housing.

• Enforcement Mechanisms: The bill outlines enforcement measures, including penalties for businesses found guilty of price gouging. These penalties may include fines and other legal actions to deter such practices during emergencies.

• Consumer Protection: The bill aims to empower consumers by providing them with the ability to report instances of price gouging to relevant authorities, ensuring swift action can be taken against violators.

Affected Parties

• Consumers: The primary beneficiaries of this legislation are consumers who may be vulnerable to price increases during disasters. The bill aims to protect low-income families and individuals who may struggle to afford essential goods during emergencies.

• Businesses: Retailers and service providers will be directly affected by the regulations imposed by this bill. While it aims to protect consumers, businesses will need to adjust their pricing strategies to comply with the new rules.

Procedural Aspects

• Introduced Date: The bill was introduced in the House on March 27, 2025.

• Committee Referral: Following its introduction, HR 2427 was referred to the House Committee on Energy and Commerce for further consideration.

• Current Status: As of now, the bill is in the early stages of the legislative process, having just been introduced and referred to committee.

Conclusion

The Stop Disaster Price Gouging Act represents a proactive approach to consumer protection during emergencies. By establishing clear definitions and enforcement mechanisms against price gouging, the bill aims to ensure that essential goods and services remain accessible to all individuals during times of crisis. As the bill progresses through the legislative process, its impact on both consumers and businesses will be closely monitored.