WASHINGTON- As frigid weather pushes up thermostats, a bipartisan group of seventy-eight Members of the U.S. House of Representatives joined Congressman Bart Stupak (D-MI) in introducing legislation aimed at cracking down on price gouging of gasoline, natural gas and other energy sources. 

“Gas prices have skyrocketed the last few weeks and this summer prices may once again exceed $3 a gallon,” Stupak said.  “As prices climb, the potential for price gouging grows.  Congress should take action now to prevent price gouging.  An ounce of legislative prevention will save consumers dollars later this year.”

The bill, the “Federal Price Gouging Prevention Act,” would give the Federal Trade Commission (FTC) the explicit authority to investigate and punish those who artificially inflate the price of energy.    The FTC would be empowered to exercise this authority at each stage of the energy production and distribution chain, with an emphasis on those who profit most.  This new authority would apply to gasoline, oil, natural gas, home heating oil, crude oil, and propane.  

“To date, the FTC has never brought a gas price gouging case to court,” Stupak said.  “The problem is the federal government has never accurately defined price gouging or provided the FTC the tools to properly prosecute price gouging.  This legislation would give the FTC the authority and direction it needs to prosecute gougers and protect consumers.” 

The bill would impose tough criminal penalties for those found guilty of price gouging.  The legislation would institute fines as high as $150 million for corporations that price gouge.  Individuals found to be gouging could face fines as high as $2 million and jail sentences up to 10 years.  The measure would also provide new civil penalties, with as much as triple the damage of profits gained from a price gouging violation.  Under the bill, penalties collected from price gougers would go toward the Low Income Home Energy Assistance Program (LIHEAP). 

“It is appropriate that the penalties gougers pay be directed to those who have difficulty affording higher energy costs,” Stupak continued.  “By putting penalty money towards LIHEAP, we can help individuals who are most acutely hurt by energy price gouging.”

During the 109th Congress, 123 Members co-sponsored similar legislation that Stupak authored.  Several more Members signed a “discharge petition,” a rare parliamentary device designed to force a bill to the floor of the House.

“Last Congress, there was strong support for my bill, but the Republican Leadership blocked it from being considered,” Stupak said.   “This Congress, I look forward to working with my colleagues on both sides of the aisle to move this legislation and to help protect the American consumer from energy price gouging.”

Stupak is the Chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.  Stupak has said publicly that he intends to make energy a key area of examination as Chair of the Subcommittee.  Stupak’s price gouging legislation is co-sponsored by 12 Members of the House Energy and Commerce Committee.  A recognized leader in the Democratic Caucus on energy issues, Stupak was selected by the Democratic leadership to deliver the Democratic radio response to the President on energy issues last spring, when gas prices soared to record levels.