Sec. 4. Prevention of price gouging with respect to goods subject to duties under balance-of-payments authority
1,454 words·~7 min read·
/bill/119/s/4038/is/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
No person may sell or offer for sale in the United States a covered good at an unreasonably high price during the 5-year period that follows the date on which— a covered duty with respect to the good took effect or was increased; or a planned duty with respect to the good was demonstrated by a written or spoken statement. The prohibition under paragraph
(1)applies without regard to the position of a person in a supply chain or distribution network. For purposes of this subsection, a person sells or offers for sale a covered good at an unreasonably high price if the person— has raised the price of a covered good that is a final good by more than the amount of— the costs directly generated by the imposition of or an increase in a covered duty with respect to the good; and additional costs incurred by the person in providing the good that demonstrate that the covered duty was not used by the person as a pretext for a price increase; or has raised the price of a covered good that is or includes a component by more than the amount of— the costs directly generated by the imposition of or an increase in a covered duty with respect to the component; and additional costs incurred by the person in providing the good that demonstrate that the covered duty was not used by the person as a pretext for a price increase. With respect to a covered good, no costs may be determined to be directly generated by the imposition of a covered duty with respect to the good before the date on which the covered duty takes effect with respect to the good. For purposes of this paragraph, the price of a covered good before the date on which any covered duty or planned duty applicable to the good took effect or was demonstrated by a written or spoken statement, as the case may be, shall be determined by reference to the average price of the good during the 180-day period preceding that date. Subsection
(a)does not apply to the sale, or offering for sale, of a covered good by a small business concern. With respect to any duty-related shock date, a person shall be presumed to be in violation of subsection
(a)if a preponderance of the evidence demonstrates that the person— has unfair leverage (as described in paragraph (3)); and sold or offered for sale on that date a covered good at a price that was greater than the average price of the good during the 180-day period preceding the date on which the most recent covered duty or planned duty applicable to the good took effect or was demonstrated by a written or spoken statement, as the case may be. A person may rebut a presumption under paragraph
(1)if the person demonstrates by clear and convincing evidence that the relevant increase in the price of a covered good is attributable, in full, to— costs directly generated by the imposition of or an increase in a covered duty with respect to the good; and additional costs incurred by the person in providing the good that demonstrate that the covered duty was not used by the person as a pretext for such increase. For purposes of this subsection, a person has unfair leverage if the person or the ultimate parent entity of the person— is not a small business concern; or satisfies another characteristic set forth in a regulation promulgated by the Commission with respect to determining unfair leverage. In January of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Commission shall adjust the amount specified in subparagraph (A)(i) by the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics with respect to the 12-month period preceding the date of such adjustment. In promulgating regulations under subparagraph (A)(ii), the Commission shall consider the capacity of a person to do the following: Absorb, in whole or in part, costs directly generated by a covered duty. Increase production, in the United States, of a good that is identical or substantially similar to a covered good. The Commission may promulgate, in accordance with section 553 of title 5, United States Code, such regulations as may be necessary to carry out this section. The Commission, in promulgating regulations under this subsection, shall consult with the United States Trade Representative, the United States International Trade Commission, the Commissioner of U.S. Customs and Border Protection, and the Commissioner of the Bureau of Labor Statistics. A violation of this section or a regulation promulgated under this section shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ) regarding unfair or deceptive acts or practices. The Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ) were incorporated into and made a part of this section. Any person who violates this section or a regulation promulgated under this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. Nothing in this section may be construed to limit the authority of the Commission under any other provision of law. In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of this section or a regulation promulgated under this section, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to— enjoin such act or practice; enforce compliance with this section or such regulation; obtain damages, restitution, or other compensation on behalf of residents of the State; or obtain such other legal and equitable relief as the court may consider to be appropriate. Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Commission immediately upon the filing of the action. On receiving notice under paragraph
(2)of an action under this subsection, the Commission shall have the right— to intervene in the action; upon so intervening, to be heard on all matters arising therein; and to file petitions for appeal. For purposes of bringing a civil action under this subsection, nothing in this Act may be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. Nothing in this subsection may be construed to prohibit an authorized official of a State from initiating or continuing any proceeding in a court of the State for a violation of any civil or criminal law of the State. Nothing in this section may be construed to preempt or otherwise affect any State or local law. Not later than 180 days after the date of the enactment of this Act, the Commission shall establish a mechanism for consumers to report to the Commission potential violations of this section. The mechanism established under paragraph
(1)shall allow a consumer to report a potential violation by a variety of means, including the following: A telephone number. A mailing address. A website. Not later than 180 days after the date of the enactment of this Act, the Commission shall promulgate regulations establishing, and providing a detailed description of, the process by which the Commission shall consider reports provided through the mechanism established under paragraph
(1)and, if applicable, open investigations into potential violations of this section. Nothing in this subsection may be construed to preclude the Commission from unilaterally initiating an investigation of a potential violation of this section.
Connectionstraces to 2
Citation graph
cites case law
Sec. 4
Prevention of price gouging with respect to goods subject to duties under balance-of-payments authority
Cites 2Cited by 0 across 0 sources