Letter Opposing the "Federal Price Gouging Prevention Act" sent to Committee on Energy and Commerce

The Honorable John D. Dingell
Chairman
Committee on Energy and Commerce
United States House of Representatives
Washington, DC 20515

The Honorable Joe Barton
Ranking Member
Committee on Energy and Commerce
United States House of Representatives
Washington, DC 20515

Dear Chairman Dingell and Ranking Member Barton:

The U.S. Chamber of Commerce, the world’s largest business federation representing more than three million businesses and organizations of every size, sector, and region, strongly opposes H.R. 1252, the “Federal Price Gouging Prevention Act.” This legislation purportedly addresses the concerns over the rising cost of gasoline and other fuels, but would more likely exacerbate market conditions and reduce energy supplies.

H.R. 1252 would levy excessive civil and criminal fines and imprisonment for sales that are deemed “price gouging,” basing a finding of liability on the determination that fuels have been sold at “unconscionably excessive” prices or that a seller is taking “unfair advantage of unusual market conditions (whether real or perceived).” However, the Chamber believes that the imposition of such extreme penalties based on such arbitrary, capricious, subjective, and illdefined standards would itself be unconscionably unjust.

Furthermore, history has shown that such legislation would produce unintended, harmful effects on the economy and on the consumers the bill purports to protect. In the past, when the government has imposed market limitations, ceilings, caps, or other restrictions, this interference with market mechanisms has not resulted in cheaper fuel, but in shortages of the very commodities that this legislation seeks to make more available.

Accordingly, the Chamber urges you and the rest of Congress reject H.R. 1252 and, instead, strive to craft an intelligent, comprehensive energy policy that would truly benefit the nation. The Chamber looks forward to the opportunity to work with you to achieve this goal.

Sincerely,
R. Bruce Josten

Cc: Members of the Committee on Energy and Commerce