Cracking Down on Price Gouging

H. Josef Hebert, Associated Press - May 23, 2007

The House, eager to do something about record high gasoline prices in advance of the Memorial Day weekend, voted narrowly Wednesday to approve stiff penalties for those found guilty of gasoline price gouging.

The bill directs the Federal Trade Commission and Justice Department to go after oil companies, traders or retail operators if they take "unfair advantage" or charge "unconscionably excessive" prices for gasoline and other fuels.

The White House called the measure a form of price controls that could result in fuel shortages. It said President Bush would be urged to veto the legislation should it pass Congress.

The bill needed the approval of two-thirds of the members of the House because the leadership considered it under an expedited legislative process. Thus, the 284-141 vote was only one over the threshold for passage. A similar measure is being considered by the Senate.

The bill would for the first time create a federal law making energy price gouging illegal. It would cover not only gasoline, but also other fuels such as natural gas and heating oil.

Rep. Bart Stupak, D-Mich., its chief sponsor, in urging his colleagues to support the bill said the issue was whether "to side with Big Oil (or) ... side with consumers who are being ripped off at the gas pump."

Speaker Nancy Pelosi made the following remarks after passage:

"This Memorial Day, American families and businesses are yet again paying record prices for gasoline. With high gasoline prices this year already costing consumers and our economy an extra $20 billion, families are feeling a serious drain on their pocketbooks.

"Drivers are paying a heavy price for six years of the Bush Administration's failed energy policies. Instead of investing in clean, domestic alternative fuels and renewable energy, Republicans lined the pockets of Big Oil, which was already making record profits. This has resulted in unprecedented dependence on foreign oil and record prices at the pump.

"Today, the House passed anti-price gouging legislation to protect Americans from being gouged at the pump and set our nation on a path toward lower gas prices. While the Bush Administration would rather veto a bill and protect Big Oil than provide consumer relief, the House voted to impose a tough new federal law to investigate and punish those who are cheating America's families by artificially inflating the price of gasoline.

"I look forward to the Senate acting on legislation to punish gas price gougers in early June, so we can send a bill to the President's desk that will put consumers first."