Rep. Frank Pallone proposes federal price-gouging laws

<p>There has been a push to crack down on price gougers after a series of catastrophic hurricanes in the United States this summer.</p>

News 12 Staff

Oct 31, 2017, 11:17 PM

Updated 2,632 days ago

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There has been a push to crack down on price gougers after a series of catastrophic hurricanes in the United States this summer.
New Jersey Rep. Frank Pallone says that there should be a federal law against price gouging during an emergency because not all states have such a law.
“A lot of times those price gouging laws…are not necessarily enforced. It depends on who's in charge and what they want to do,” Pallone said during a news event in Long Branch Tuesday.
Pallone says that New Jersey’s law against price gouging is a model for federal legislation. The New Jersey law bans more than 10 percent price increases after an emergency declaration.
Violators of the law face a $10,000 fine for the first offense and a $20,000 fine after that. Pallone's bill would leave it up to the Federal Trade Commission to set gouging standards and penalties.
“Having federal laws that either strengthen or mirror state laws is always helpful,” says Beverly Brown Ruggia of New Jersey Citizen Action.
Lawsuits over price gouging filed after Superstorm Sandy led to fines against a number of hotels, gas stations and supply stores in New Jersey.