(Warwick, R.I.) Congressman Jim Langevin (D-RI) today voted for the Federal Price Gouging Prevention Act, which allows the federal government to investigate and punish those who artificially inflate the price of gasoline.  The bill sets civil and criminal penalties for price gouging, and permits states to bring lawsuits against wholesalers or retailers who engage in such practices.

“With Memorial Day and the start of the summer driving season only a few weeks away, drivers are paying a heavy price for the Bush Administration’s failure to enact a comprehensive energy strategy,” said Langevin, who is cosponsoring this bill. “And as prices climb, so does the potential for consumers to be gouged at the pump.”

H.R. 1252 declares price gouging to be an unfair or deceptive act, and allows the Federal Trade Commission (FTC) to enforce the ban on price gouging in areas where the president has declared an energy emergency.

Other provisions in the Federal Price Gouging Prevention Act include:
• Prohibiting wholesale or retail vendors to sell gasoline or other petroleum-based fuels, such as diesel fuel, at an "unconscionably excessive" price, or at prices that indicate "the seller is taking unfair advantage" of an emergency situation.
 
• Allowing the appropriate federal authorities (FTC and the Justice Department) to investigate price gouging claims.
 
• Setting criminal penalties for price gouging of up to 10 years in prison, and up to $150 million in fines for corporations, and up to 10 years in prison and fines of up to $2 million for individuals.  (Fines collected will be deposited into a fund to support the Low Income Home Energy Assistance Program).

The House, in January, voted to roll back $14 billion dollars in taxpayer subsidies for big oil companies, which are already enjoying record profits. That money will be reinvested here at home in clean, alternative fuels, renewable energy and energy efficiency. 

“As the next step in our energy agenda, the Democrats are developing an Independence Day package to boldly address energy independence and global warming by rapidly expanding the production of clean, alternative fuels and increasing energy efficiency, which will lead to reduced energy costs to consumers,” continued Langevin.

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