Gasoline Price Increases: Federal and State
April 19, 2022
Authority to Limit “Price Gouging”
Adam Vann
Fluctuations in gasoline prices, including Authority to Limit "Price Gouging"
Updated May 5, 2026
(R47072)
Jump to Main Text of Report
Summary
Fluctuations in gasoline prices, including those resulting from crude oil supply chain concerns related to international events, supply chain concerns related to international events,
Legislative Attorney
have renewed focus on the role of the government in discouraging gasoline have renewed focus on the role of the government in discouraging gasoline
“"price gougingprice gouging
,” a
term." Price gouging is a phrase commonly used to refer to sellers increasing prices to take advantage of certain commonly used to refer to sellers increasing prices to take advantage of certain
circumstances that trigger circumstances that trigger
significant decreases in supplydecreases in supply
without a corresponding decrease in demand, including emergencies. , including emergencies.
OthersOther bills have sought to have sought to
enhance protections against enhance protections against
“"price fixing,price fixing,
”" whereby sellers collude to raise prices beyond levels whereby sellers collude to raise prices beyond levels
dictated by market conditions. Past federal legislative efforts to address gasoline price gouging and price fixing would dictated by market conditions. Past federal legislative efforts to address gasoline price gouging and price fixing would
bar have barred certain commercial practices and certain commercial practices and
mandatemandated studies of gasoline pricing. studies of gasoline pricing.
The federal government has not enacted legislation aimed specifically at
Although federal antitrust laws restrict the coordinated manipulation of a market, no federal statute specifically addresses price spikes for retail gasoline price spikes for retail gasoline
. However, a that result from the non-coordinated behavior of individual sellers. A majority majority
of states have enacted statutes to curtail price gouging for certain critical goods and services, including gasoline, during of states have enacted statutes to curtail price gouging for certain critical goods and services, including gasoline, during
emergencies. Some of these statutes bar pricing during emergencies that is considered to be emergencies. Some of these statutes bar pricing during emergencies that is considered to be
“unconscionable” or “excessive” "unconscionable" or "excessive" or otherwise violates a subjective standard. Other or otherwise violates a subjective standard. Other
state statutes place a statutes place a
hard cap on prices during periods of emergency based on cap on prices during periods of emergency based on
percentage increases from prices charged percentage increases from prices charged
for the good or service in question prior to the emergencyprior to the emergency for specific goods and services. These state statutes . These state statutes
generally allow sellers to show generally allow sellers to show
as a defense that the price increases are the result of increased costs rather than simply changes in the that the price increases are the result of increased costs rather than simply changes in the
marketplace.marketplace.
Multiple bills introduced in the 117th Congress would explicitly address price gouging for retail gasoline or other practices that might impact retail pricing during emergencies at the federal level. This has been the case in previous Congresses as well. Some of the legislation proposes limitations on pricing during emergencies similar to the state statutes, while others choose a different approach.
Although there is no federal law aimed specifically at price gouging or at retail gasoline pricing, federal antitrust laws do forbid various types of anticompetitive business practices. For example, Section 1 of the Sherman Act prohibits unreasonable restraints of trade. It is possible that a group of gasoline retailers or other retailers collaborating to set prices unreasonably high during an emergency could violate Section 1 of the Sherman Act. In addition, federal statutes addressing monopolies and vertical integration may play a role in evaluating retail gasoline price changes.
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link to page 4 link to page 4 link to page 5 link to page 5 link to page 6 link to page 7 link to page 8 link to page 9 Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
Contents
Introduction ..................................................................................................................................... 1
State Price-Gouging Laws ............................................................................................................... 1
Examples of State Statutes ........................................................................................................ 2
Prohibitions on “Excessive” or “Unconscionable” Pricing ................................................ 2
Prohibitions of Price Increases Beyond a Certain Percentage ............................................ 3
State Price-Gouging Regulations ........................................................................................ 4
Federal Price-Gouging Legislation Introduced in the 117th Congress ............................................. 5
Contacts
Author Information .......................................................................................................................... 6
Congressional Research Service
Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
Introduction
Military operations against Iran have impacted oil shipping through the Strait of Hormuz, creating supply constraints and resulting in increased gasoline prices. This has renewed congressional interest in price gouging and other price manipulation practices. Multiple bills introduced in the 119th Congress would explicitly address price gouging for retail gasoline or other practices that might impact retail pricing during emergencies at the federal level. Some bills that would place limits on pricing during emergencies resemble restrictions found in state statutes, while other bills take a different approach.
Introduction
Fluctuations in retail gasoline pricing have a substantial impact on Americans and, as a result, Fluctuations in retail gasoline pricing have a substantial impact on Americans and, as a result,
often receive substantial media, public, and government attention—particularly when the price often receive substantial media, public, and government attention—particularly when the price
spikes. This attention spikes. This attention
sometimes takes the form ofmay result in accusations that sellers of crude oil or retail accusations that sellers of crude oil or retail
gasoline are engaged in gasoline are engaged in
“"price gougingprice gouging
”" or or
“"price fixing.price fixing.
”
"
"Price gouging is a term commonly used to refer to sellers inflating prices to “unfair” levels in order to take advantage of circumstances that decrease supply, including emergencies. Currently, no federal law specifically addresses price gouging.1 However, bills have been introduced in the 117th Congress that would prohibit price gouging of gasoline and other fuels.2 In addition, price-" is a colloquial phrase usually referring to instances where "retailers and others take advantage of spikes in demand by charging exorbitant prices for necessities, often after a natural disaster or other state of emergency."1 Military operations against Iran have impacted oil shipping through the Strait of Hormuz, creating supply constraints and contributing to increased gasoline prices.2 This has renewed congressional interest in price gouging and other price manipulation practices.3 Currently, no federal law explicitly addresses price gouging.4 However, price-gouging laws already exist in many states and are generally applicable in situations arising from a gouging laws already exist in many states and are generally applicable in situations arising from a
declared emergency.3 An increase in prices alone does not constitute price gouging under most of these state statutes. Generally, protections and prohibitions in these statutes are triggered only when prices increase following a statutorily designated eventdeclared emergency.5 Increases in gas prices prompted by ongoing activities in Iran and the Strait of Hormuz would likely be a triggering event for the applicability of some state price-gouging statutes;6 the applicability of other state statutes, including those that require a declaration of emergency by a state governor, is less clear. Federal antitrust and consumer . Federal antitrust and consumer
protection laws also afford consumers some protection from unfair pricing schemes.protection laws also afford consumers some protection from unfair pricing schemes.
4 7
This report This report
begins with a discussion of state price-gouging laws, including their triggers and applications, and begins with a discussion of state price-gouging laws, including their triggers and applications, and
then moves to a discussion ofthen describes proposed federal legislation aimed at prohibiting price gouging. proposed federal legislation aimed at prohibiting price gouging.
The report also analyzes existing federal law regarding anticompetitive behavior and how it might apply to the market for gasoline or other petroleum products.
State Price-Gouging Laws
State Price-Gouging Laws
Many states have enacted some type of prohibition or limitation on price increases during Many states have enacted some type of prohibition or limitation on price increases during
declared emergencies. Generally, these state laws take one of two basic forms. Some states declared emergencies. Generally, these state laws take one of two basic forms. Some states
prohibit the sale of goods and services at what are deemed to be prohibit the sale of goods and services at what are deemed to be
“unconscionable” or “excessive” "unconscionable" or "excessive" prices in the area and during the period of a designated emergency.prices in the area and during the period of a designated emergency.
8 Other states have established a Other states have established a
maximum permissible increase in the prices for retail goods during a designated emergency maximum permissible increase in the prices for retail goods during a designated emergency
period. Many statutes of both kinds include an exemption if price increases are the result of increased costs incurred for procuring the goods or services in question.
1 Although they are often conflated, “price gouging” is not the same as “price fixing,” which refers to coordination among rival businesses to charge higher prices. This report focuses on “price gouging” and sudden price spikes triggered by external events. Section 1 of the Sherman Antitrust Act categorically prohibits “naked” price fixing—that is, price fixing among rivals that is not connected to any legitimate joint productive activity. 15 U.S.C. § 1; United States v. Socony-Vacuum Oil Co., 310 U.S. 150, 218 (1940). For more discussion of federal regulation of such practices, see CRS In Focus IF11234, Antitrust Law: An Introduction, by Jay B. Sykes.
2 See H.R. 7099, S. 3920. The substance of these bills is discussed later in this report. 3 At least 30 states—Alabama, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Wisconsin—as well as the District of Columbia, Guam, and the Northern Mariana Islands—have laws or regulations that prohibit price gouging, excessive price increases, or unconscionable pricing. Most states have laws that are triggered in the event of a declared emergency, with a few having laws that may be applicable at other times as well. Other states may also exercise authority under general deceptive trade practice laws depending on the nature of the state law and the specific circumstances in which price increases occur.
4 For example, the Federal Trade Commission has adopted rules to prohibit energy market manipulation, as directed by Congress in Subtitle B of Title VIII of the Energy Independence and Security Act of 2007, P.L. 110-140. See 16 C.F.R. Part 317.
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Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
period.9
Examples of State Statutes
Prohibitions on “Excessive” or “Unconscionable” Pricing
"Excessive" or "Unconscionable" Pricing
One common way that states address price gouging is to ban prices that are considered to be (for One common way that states address price gouging is to ban prices that are considered to be (for
example) example)
“excessive” or “"excessive" or "unconscionable,unconscionable,
”" as defined in the statute or left to the discretion of the as defined in the statute or left to the discretion of the
courts. These statutes generally bar such increases during designated emergency periods. The courts. These statutes generally bar such increases during designated emergency periods. The
process for emergency designation is also usually defined in the statute. Frequently, the stateprocess for emergency designation is also usually defined in the statute. Frequently, the state
’s 's governor is governor is
often granted authority to designate an emergency during which the price limitations are in granted authority to designate an emergency during which the price limitations are in
place.place.
For example, the New York statute provides that:For example, the New York statute provides that:
During any abnormal disruption of the market for During any abnormal disruption of the market for
consumer goods and services vital and goods and services vital and
necessary for the health, safety and welfare of consumers, no party within the chain of distribution of such consumer necessary for the health, safety and welfare of consumers or the general public, no party within the chain of distribution of such goods or services or both shall sell or offer to sell any such goods or services or both shall sell or offer to sell any such
goods or services or both for an amount which represents an unconscionably goods or services or both for an amount which represents an unconscionably excessive excessive
price.price.
5
10
The statute defines The statute defines
abnormal disruption of the market as a real or threatened change to the market as a real or threatened change to the market
“"resulting from stress of weather, convulsion of nature, failure or shortage of electric power or resulting from stress of weather, convulsion of nature, failure or shortage of electric power or
other source of energy, strike, civil disorder, war, military action, national or local emergency other source of energy, strike, civil disorder, war, military action, national or local emergency
… . . . which results in the declaration of a state of emergency by the governor.which results in the declaration of a state of emergency by the governor.
”6"11 The statute provides The statute provides
only for criminal liability and leaves the ultimate decision as to whether a price is only for criminal liability and leaves the ultimate decision as to whether a price is
“"unconscionably excessiveunconscionably excessive
”" to prosecutors (for charging purposes) and to the courts, with no to prosecutors (for charging purposes) and to the courts, with no
separate cause of action created for private parties.separate cause of action created for private parties.
12 As guidance in such cases, the statute notes As guidance in such cases, the statute notes
that if there is a that if there is a
“"gross disparitygross disparity
”" between the price during the disruption and the price prior to the between the price during the disruption and the price prior to the
disruption, or if the price disruption, or if the price
“"grossly grossly
exceeds”exceed[s]" the price at which the same or similar goods are the price at which the same or similar goods are
available in the area, such disparity will be considered prima facie evidence that a price is available in the area, such disparity will be considered prima facie evidence that a price is
unconscionable.unconscionable.
7
Similarly, Florida’s statute bars “unconscionable pricing” during declared states of emergency.8 If the amount being charged represents a “gross disparity”13 The New York statute also prohibits price gouging only with respect to "goods and services vital and necessary for the health, safety and welfare of consumers or the general public."14
Similarly, Florida's statute bars "unconscionable pric[ing]" during declared states of emergency.15 If the amount being charged represents a "gross disparity" from the average price at which the from the average price at which the
product or service was sold in the usual course of business (or available in the product or service was sold in the usual course of business (or available in the
“"trade areatrade area
”) ") during the during the
30thirty days immediately prior to a declaration of a state of emergency, it is considered days immediately prior to a declaration of a state of emergency, it is considered
prima facie evidence of prima facie evidence of
“"unconscionable unconscionable
pricing,”pric[ing]," which constitutes an which constitutes an
“"unlawful actunlawful act
[] or practice[]."16 or practice.”9 However, pricing is not considered unconscionable if the increase is attributable to However, pricing is not considered unconscionable if the increase is attributable to
additional costs incurred by the seller or is the result of national or international market trends.additional costs incurred by the seller or is the result of national or international market trends.
10 17 As with the New York statute, the Florida statute offers guidance, but the question of whether As with the New York statute, the Florida statute offers guidance, but the question of whether
certain prices during an emergency are deemed certain prices during an emergency are deemed
“unconscionable”"unconscionable" is ultimately left to the courts. is ultimately left to the courts.
Many
Both the New York and Florida statutes, as well as many other state price-gouging laws state price-gouging laws
, are triggered only by are triggered only by
aan explicit declaration of emergency declaration of emergency
by a government official in response to in response to
localized conditions.localized conditions.
18 Thus, they Thus, they
will generallygenerally will not apply after a declared emergency ends or in not apply after a declared emergency ends or in
areas not directly affected by a particular emergency or natural disaster. However, at least two areas not directly affected by a particular emergency or natural disaster. However, at least two
5 N.Y. Business Law § 396-r(2). 6 Id. 7 Id. at § 396-r(3). 8 Fla. Stat. § 501.160(1)(b)(3). 9 Fla. Stat. §§ 501.160(1)(b)(1)-(2), 501.204. The section does not create a private cause of action for people harmed by such pricing. Fla. Stat. § 501.160(6).
10 Id.
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Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
states have laws prohibiting excessive pricing that impose liability even without a declaration of states have laws prohibiting excessive pricing that impose liability even without a declaration of
any type of emergency. Maine law prohibits any type of emergency. Maine law prohibits
“unjust or unreasonable” profits"unconscionable price[s]" in the sale, in the sale,
exchange, or handling of necessities, defined to include fuel.exchange, or handling of necessities, defined to include fuel.
1119 Michigan Michigan
’'s consumer protection s consumer protection
act simply prohibits act simply prohibits
“"charging the consumer a price that is grossly in excess of the price at which charging the consumer a price that is grossly in excess of the price at which
similar property or services are sold.similar property or services are sold.
”12 "20
Prohibitions of Price Increases Beyond a Certain Percentage
In contrast to a general ban on In contrast to a general ban on
“excessive” or “unconscionable”"excessive" or "unconscionable" pricing, some state statutes leave pricing, some state statutes leave
less to the courtsless to the courts
’' discretion and instead place discretion and instead place
explicit limits on price increases of certain goods during limits on price increases of certain goods during
emergencies.emergencies.
For example, CaliforniaFor example, California
’'s anti-price-gouging statute states that for a period of s anti-price-gouging statute states that for a period of
30thirty days following days following
the proclamation of a state of emergency by the President of the United States or the governor of the proclamation of a state of emergency by the President of the United States or the governor of
California or the declaration of a local emergency by the relevant California or the declaration of a local emergency by the relevant
state executive officer, it is unlawful executive officer, it is unlawful
to sell or offer certain goods and services (including emergency and medical supplies, building to sell or offer certain goods and services (including emergency and medical supplies, building
and transportation materials, fuel, etc.) at a price more than 10% higher than the price of the good and transportation materials, fuel, etc.) at a price more than 10% higher than the price of the good
prior to the proclamation of emergency.prior to the proclamation of emergency.
1321 As a defense, a seller can show that the price increase As a defense, a seller can show that the price increase
was directly attributable to additional costs imposed on it by the supplier of the goods or was directly attributable to additional costs imposed on it by the supplier of the goods or
additional costs for the labor and material used to provide the services.additional costs for the labor and material used to provide the services.
1422 The prohibition lasts for The prohibition lasts for
30thirty days from the date of issuance of the emergency proclamation. days from the date of issuance of the emergency proclamation.
15
23 The California statute defines a "state of emergency" as "a natural or manmade emergency resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal infestation or disease, pandemic or epidemic disease outbreak, or other natural or manmade disaster for which a state of emergency has been declared."24
West Virginia has also adopted an anti-price-gouging measure based on caps to percentage West Virginia has also adopted an anti-price-gouging measure based on caps to percentage
increases in price during times of emergency. The West Virginia statute provides that upon a increases in price during times of emergency. The West Virginia statute provides that upon a
declaration of a state of emergency by the President of the United States, the governor, or the declaration of a state of emergency by the President of the United States, the governor, or the
state legislature, it is unlawful to sell or offer to sell certain critical goods and services state legislature, it is unlawful to sell or offer to sell certain critical goods and services
“"for a price for a price
greater than greater than
ten10 percent above the price charged by that person for those goods percent above the price charged by that person for those goods
andor services on services on
the tenththe 10th day immediately preceding the declaration of emergency. day immediately preceding the declaration of emergency.
”16"25 West Virginia also provides West Virginia also provides
an exception for price increases attributable to increased costs on the seller imposed by the an exception for price increases attributable to increased costs on the seller imposed by the
supplier or to added costs of providing the goods or services during the emergency.supplier or to added costs of providing the goods or services during the emergency.
17
26
Some states use language barring Some states use language barring
“unconscionable” or “excessive”"unconscionable" or "excessive" pricing in a manner similar to pricing in a manner similar to
the state statutes described in the previous sectionthe state statutes described in the previous section
, but define these terms with hard caps instead of but define these terms with hard caps instead of
leaving their exact definition to the discretion of the courts. For example, the Alabama statute leaving their exact definition to the discretion of the courts. For example, the Alabama statute
makes it unlawful for anyone to makes it unlawful for anyone to
“"impose unconscionable prices for the sale or rental of any impose unconscionable prices for the sale or rental of any
commodity or rental facilitycommodity, the rental of any facility, or the provision of any service during the period of a declared state of emergency. during the period of a declared state of emergency.
”18 However, it "27 It also provides that prima facie evidence of unconscionable pricing exists provides that prima facie evidence of unconscionable pricing exists
“"if any person, during a state if any person, during a state
of emergency declared pursuant to the powers granted to the Governorof emergency declared pursuant to the powers granted to the Governor
. . . , charges a price that , charges a price that
exceeds, by an amount equal to or in excess of 25exceeds, by an amount equal to or in excess of 25
%, percent the average price at which the same or the average price at which the same or
similar commodity or rental facility was obtainable in the affected area during the last 30 days similar commodity or rental facility was obtainable in the affected area during the last 30 days
11 Me. Rev. Stat. tit. 10, § 1105. 12 MCL 445.903(1)(z). 13 Cal. Penal Code § 396. 14 Id. 15 Id. The statute also forbids contractors from price increases for services related to emergency cleanups for a period of 180 days following the emergency declaration.
16 W. Va. Code R. § 46A-6J-3. 17 Id. 18 Ala. Code § 8-31-3.
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Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
immediately prior to the declared state of emergency.”19immediately prior to the declared state of emergency."28 As with most other state price-gouging As with most other state price-gouging
statutes, the statute does not apply if the price increase is attributable to reasonable costs incurred statutes, the statute does not apply if the price increase is attributable to reasonable costs incurred
by the seller in connection with the rental or sale of the commodity.by the seller in connection with the rental or sale of the commodity.
20
29
A few other states have imposed caps on price increases during emergencies even tighter than the A few other states have imposed caps on price increases during emergencies even tighter than the
one imposed by the aforementioned statutes. Some state statutes ban one imposed by the aforementioned statutes. Some state statutes ban
any price increase during price increase during
periods of emergency. For example, in Georgia, it is considered an periods of emergency. For example, in Georgia, it is considered an
“"unlawful, unfair and unlawful, unfair and
deceptive trade practicedeceptive trade practice
”" for anyone doing business in an for anyone doing business in an
areasarea where a state of emergency has where a state of emergency has
been declared tobeen declared to
sell or offer for sale at retail any goods or services identified by the Governor in the declaration of the state of emergency necessary to preserve, protect, or sustain the life,
sell or offer for sale at retail any goods or services identified by the Governor in the declaration of the state of emergency necessary to preserve, protect, or sustain the life, health, or safety of persons or their property at a price higher than the price at which such health, or safety of persons or their property at a price higher than the price at which such
goods were sold or offered for sale immediately prior to the declaration of a state of emergency.21
goods were sold or offered for sale immediately prior to the declaration of a state of emergency.30
As with other state gouging statutes, the Georgia statute provides an exception for price increases As with other state gouging statutes, the Georgia statute provides an exception for price increases
that reflect that reflect
“"an increase in cost of the goods or services to the person selling the goods or services an increase in cost of the goods or services to the person selling the goods or services
or an increase in the cost of transporting the goods or services into the area.or an increase in the cost of transporting the goods or services into the area.
”22 "31
State Price-Gouging Regulations
In some states, anti-price-gouging measures have been implemented by the stateIn some states, anti-price-gouging measures have been implemented by the state
’'s executive s executive
branch pursuant to branch pursuant to
its delegated authority to protect consumersstate consumer protection laws. For example, in Massachusetts . For example, in Massachusetts
there is no statute that specifically addresses there is no statute that specifically addresses
“"price gouging.price gouging.
”" However, the state However, the state
’'s regulatory s regulatory
code includes a price-gouging provision similar to those found in state statutes as described code includes a price-gouging provision similar to those found in state statutes as described
above.above.
32 The Massachusetts regulation provides that it shall be The Massachusetts regulation provides that it shall be
“"an unfair or deceptive act or an unfair or deceptive act or
practice, during any market emergency, for any petroleum-related business to sell or offer to sell practice, during any market emergency, for any petroleum-related business to sell or offer to sell
any petroleum product for an amount that represents an unconscionably high price.any petroleum product for an amount that represents an unconscionably high price.
”23"33 The The
regulation defines regulation defines
unconscionable high price as a price that as a price that
represents a gross disparity between the price of the petroleum product and 1. the price at represents a gross disparity between the price of the petroleum product and 1. the price at
which the same product was sold or offered for sale by the petroleum-related business in which the same product was sold or offered for sale by the petroleum-related business in
the usual course of business immediately prior to the onset of the market emergency, or 2. the usual course of business immediately prior to the onset of the market emergency, or 2.
the price at which the same or similar petroleum product is readily obtainable by the price at which the same or similar petroleum product is readily obtainable by other other
buyers in the trade area; and buyers in the trade area; and
. . .
the disparity is not substantially attributable to increased prices charged by the petroleum-the disparity is not substantially attributable to increased prices charged by the petroleum-
related business suppliers or increased costs due to an abnormal market disruption.related business suppliers or increased costs due to an abnormal market disruption.
24
34
The Massachusetts attorney general promulgated these regulations pursuant to statute that The Massachusetts attorney general promulgated these regulations pursuant to statute that
authorizes regulations to administer the stateauthorizes regulations to administer the state
’'s Fair Business Practices Act.s Fair Business Practices Act.
2535 This state statute is This state statute is
somewhat similar to the Federal Trade Commission Act, which makes unlawful somewhat similar to the Federal Trade Commission Act, which makes unlawful
“"unfair or unfair or
deceptive acts or practices in or affecting commercedeceptive acts or practices in or affecting commerce
”26"36 and authorizes the Federal Trade Commission (FTC) to take action to prevent " and authorizes the Federal Trade
19 Ala. Code § 8-31-4. 20 Id. 21 Ga. Code Ann. § 10-1-393.4 22 Id. 23 940 Mass. Code Regs § 3.18(1). 24 Id. at § 3.18(2). 25 Ga. Code Ann. § 10-1-395. 26 15 U.S.C. § 45(a)(1).
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Commission (FTC) to take action to prevent “unfair methods of competition in or affecting unfair methods of competition in or affecting
commerce and unfair or deceptive acts or practices in or affecting commerce.commerce and unfair or deceptive acts or practices in or affecting commerce.
”27
"37
Iowa has also chosen to address price gouging through regulations implementing its Consumer Iowa has also chosen to address price gouging through regulations implementing its Consumer
Fraud Act.Fraud Act.
38 That statute prohibits unfair and deceptive trade practices in the sale of a product or That statute prohibits unfair and deceptive trade practices in the sale of a product or
service and authorizes the state attorney general to adopt rules and service and authorizes the state attorney general to adopt rules and
to file lawsuits for injunctive file lawsuits for injunctive
relief or civil penalties for parties in violation of the act.relief or civil penalties for parties in violation of the act.
2839 Pursuant to this authority, the Iowa Pursuant to this authority, the Iowa
attorney general adopted a regulation declaring that attorney general adopted a regulation declaring that
“"the charge of excessive prices for the charge of excessive prices for
merchandise needed by victims of disastersmerchandise needed by victims of disasters
”" constitutes an unfair practice under the Iowa constitutes an unfair practice under the Iowa
Consumer Fraud Act.Consumer Fraud Act.
2940 The regulation defines The regulation defines
excessive price as as
“"one that is not justified by the one that is not justified by the
seller’seller's actual costs of acquiring, producing, selling, transporting, and delivering the actual s actual costs of acquiring, producing, selling, transporting, and delivering the actual
product sold, plus a reasonable profit.product sold, plus a reasonable profit.
”30
Federal Price-Gouging Legislation Introduced in the
117th Congress
There is no federal law that"41
Federal Oversight of Price-Gouging
No federal statute deals specifically with price gouging. However, federal antitrust laws deals specifically with price gouging. However, federal antitrust laws
may apply to behavior generally regarded as price gouging.may apply to behavior generally regarded as price gouging.
31 The FTC also sometimes warns consumers of conditions for price gouging ahead of certain events like national disasters and directs them to be wary of exploitative retailers.42 The FTC monitors gas prices and The FTC monitors gas prices and
investigates possible antitrust violations in the petroleum industry.investigates possible antitrust violations in the petroleum industry.
3243 In addition, the Energy In addition, the Energy
Policy Act of 2005 required the FTC to investigate whether the price of gasoline Policy Act of 2005 required the FTC to investigate whether the price of gasoline
iswas being being
“"artificially manipulated by reducing refinery capacity or by any other form of market artificially manipulated by reducing refinery capacity or by any other form of market
manipulation or price gouging practices.manipulation or price gouging practices.
”33 In May "44 In 2006, the FTC released its report, finding 2006, the FTC released its report, finding
generally that sellers behaved competitively following Hurricane Katrina and that the price generally that sellers behaved competitively following Hurricane Katrina and that the price
increases were the result of increased costs, although there were limited instances of price increases were the result of increased costs, although there were limited instances of price
gouging.gouging.
3445 Interest in gasoline prices also goes beyond the potential antitrust problem of market Interest in gasoline prices also goes beyond the potential antitrust problem of market
manipulation and extends to the non-coordinated behavior of individual sellers.
At least two bills introduced in the 117th Congress specifically address crude oil and gasoline price gouging in response to emergencies. H.R. 7099 would impose a 50% tax on large crude oil producers35 that meet minimum production and gross receipts thresholds on “the excess of the adjusted taxable income of the applicable taxpayer for taxable year 2022 over the reasonably inflated average profit for such taxable year.”36 Reasonably inflated average profit is defined as “an amount equal to the average of the adjusted taxable income of such taxpayer for taxable years beginning during the 2015–2019 taxable year period (determined without regard to the taxable year with the highest adjusted taxable income in such period) plus 10 percent of such average.”
27 Id. at § 45(a)(2). 28 Iowa Code § 714.16. 29 Iowa Admin. Code § 61-31.1. 30 Id. 31 The applicability of the federal antitrust laws to the petroleum industry generally and retail gasoline prices specifically are discussed later in this report.
32 For more information on the FTC’s activities with respect to gas pricing, see http://www.ftc.gov/ftc/oilgas/index.html.
33 P.L. 109-58 at § 1809 (August 8, 2005). 34 The FTC’s report can be viewed at http://www.ftc.gov/opa/2006/05/katrinagasprices.htm. 35 Note that H,R. 7099 would regulate crude oil prices, not gasoline prices. While crude oil prices and gasoline prices are related, crude oil producers are usually multiple steps removed from retail gasoline sales.
36 H.R. 7099, at § 2(a).
Congressional Research Service
5
Gasoline Price Increases: Federal and State Authority to Limit “Price Gouging”
The bill does not address future tax years, suggesting an intent to capture profits associated with the 2022 gasoline and crude oil price spikes. The revenue would be used to fund an “energy price rebate” for eligible individual taxpayers.37
S. 3920 would address the sale of wholesale or retail gasoline (or any other petroleum distillate) at a price that is “unconscionably excessive” and that “indicates that the seller is taking unfair advantage of the circumstances related to an international crisis to increase prices unreasonably.”38 The bill would make it unlawful to engage in this behavior during an “international crisis affecting the oil markets” as declared by the President within the affected area as designated by the President.39 The bill would create both civil and criminal penalties for violations.40 The FTC would be tasked with enforcement,41 although the bill would also authorize state attorneys general to bring civil actions on behalf of state residents to enforce the provisions of the bill and to recover civil penalties.42
Author Information
Adam Vann
Legislative Attorney
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
37 Id. 38 H.R. 964/S. 3920, at § 2(a)(1). The bill includes factors to be considered in evaluating whether such a sale has occurred, including whether the price charged grossly exceeded the average price at which the applicable petroleum distillate was offered for sale by that person during the 30 days prior to the presidential proclamation declaring the emergency, whether the price charged grossly exceeded the price at which the same or similar petroleum distillates were readily obtainable from competing sellers during the same time period, whether the price charged reasonably reflected additional costs not within the control of the seller or reflected additional risks taken by the seller, and whether the price charged was substantially attributable to local, regional, national, or international market conditions. Id. at § 2(a)(3).
39 S. 3920. 40 Id. 41 Id. 42 Id.
Congressional Research Service
R47072 · VERSION 1 · NEW
6 manipulation and extends to the non-coordinated behavior of individual sellers. The FTC issued a second report on gasoline pricing in 2011, once again finding that crude oil prices rather than price fixing or price gouging was the "main driver" of retail gasoline price increases over the previous six years.46
Legislative Activity and Considerations for the 119th Congress
Multiple legislative proposals in the 119th Congress would give the federal government the authority to regulate and limit retail price gouging for gasoline and other consumer goods and services.47 For example, H.R. 4528 and S. 2321, the Price Gouging Prevention Act of 2025, would make it a federal crime to "sell or offer for sale a good or service at a grossly excessive price" and would make it a presumptive violation of this prohibition if "during an exceptional market shock, it is shown by a preponderance of the evidence that the person . . . is using the effects or circumstances related to an exceptional market shock as a pretext to increase prices."48 Such legislation could capture price increases associated with the military conflict in Iran which likely qualifies as an "exceptional market shock" as defined by the bill, although some retailers might be able to demonstrate that the increase in price was a direct result of additional costs not within their control.49 Other legislation seeks to prevent price gouging in goods subject to tariffs. For example, H.R. 6318 would prohibit selling "a tariffed good at an unreasonably high price during the 5-year period" following imposition of the tariff.50
Prosecutions for "price gouging" are generally done at the state level under the existing legal framework. Legislators who want to expand federal enforcement authority can look to bills introduced in this Congress or in previous Congresses, or at the state statutes discussed in this report, for guidance on any number of potential approaches. Options include broader grants of authority to enforce price gouging prohibitions across a range of goods51 to bills that specifically target crude oil and gasoline pricing.52 The broad panoply of state approaches discussed in this report also offer options for legislators to consider if they seek to expand the federal role in limiting price gouging.
Footnotes
| 1.
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Price Gouging State Statutes, Nat'l Conf. of State Legislatures (Jan. 1, 2025), https://www.ncsl.org/financial-services/price-gouging-state-statutes.
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| 2.
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Emmitt Linder, A Record Jump in U.S. Gasoline Prices Is Squeezing Consumers, N.Y. Times (Apr. 10, 2026), https://www.nytimes.com/2026/04/10/business/economy/gasoline-price-rise.html [https://perma.cc/VGD5-TA8T]. For further discussion and analysis, see CRS Report R45281, Iran Conflict and the Strait of Hormuz: Impacts on Oil, Gas, and Other Commodities, coordinated by Michael Ratner (2026).
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| 3.
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See, e.g., Letter from Elizabeth Warren, Senator, U.S. Senate, to Andrew Ferguson, Chair, FTC (Mar. 23, 2026), https://www.warren.senate.gov/imo/media/doc/letter_to_ftc_re_iran_price_gouging.pdf [https://perma.cc/5SYJ-K2VP].
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| 4.
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Although they are often conflated, "price gouging" is not the same as "price fixing," which refers to coordination among rival businesses to charge higher prices. This report focuses on "price gouging" and sudden price spikes triggered by external events. Section 1 of the Sherman Antitrust Act categorically prohibits "naked" price fixing—that is, price fixing among rivals that is not connected to any legitimate joint productive activity. 15 U.S.C. § 1; United States v. Socony-Vacuum Oil Co., 310 U.S. 150, 218 (1940). For more discussion of federal regulation of such practices, see CRS In Focus IF11234, Antitrust Law: An Introduction, by Jay B. Sykes (2025).
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| 5.
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A majority of states as well as the District of Columbia, Guam, and the Northern Mariana Islands have laws or regulations that prohibit price gouging, excessive price increases, or unconscionable pricing. Most of these states have laws that are triggered in the event of a declared emergency, with a few having laws that may be applicable at other times as well. Other states may also exercise authority under general deceptive trade practice laws depending on the nature of the state law and the specific circumstances in which price increases occur. Nat'l Conf. of State Legislators, supra note 1.
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| 6.
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See., e.g., Me. Rev. Stat. Ann. tit. 10, § 1105 (2026); Mich. Comp. Laws § 445.903(1)(z) (2026).
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| 7.
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For example, the Federal Trade Commission has adopted rules to prohibit energy market manipulation, as directed by Congress in Subtitle B of Title VIII of the Energy Independence and Security Act of 2007, Pub. L. No. 110-140, 121 Stat. 1492; see 16 C.F.R. pt. 317 (2026).
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| 8.
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See, e.g., S.C. Code Ann. § 16-7-10 (2026), Tex. Bus. & Com. Code Ann. §§ 17.46(b)(27), 17.4625 (West 2026).
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| 9.
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See, e.g., Nev. Rev. Stat. § 598.09235 (2026).
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| 10.
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N.Y. Gen. Bus. Law § 396-r(2)(a) (McKinney 2026).
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| 11.
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Id. § 396-r(2)(b).
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| 12.
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Id. § 396-r(3).
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| 13.
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Id. § 396-r(3)(b).
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| 14.
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Id. § 396-r(2)(d).
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| 15.
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Fla. Stat. § 501.160 (2026).
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| 16.
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Id. §§ 501.160(1)(b), 501.204. The section does not create a private cause of action for people harmed by such pricing. Id. § 501.160(6).
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| 17.
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Id. § 501.160(1)(b).
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| 18.
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N.Y. Gen. Bus. Law § 396-r(2) (McKinney 2026); Fla. Stat. § 501.160; see, e.g., Md. Code Ann., Pub. Safety §§ 14-1301–14-1304 (West 2026).
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| 19.
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Me. Rev. Stat. Ann. tit. 10, § 1105 (2026).
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| 20.
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Mich. Comp. Laws § 445.903(1)(z) (2026).
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| 21.
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Cal. Penal Code § 396 (West 2026).
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| 22.
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Id. § 396(b).
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| 23.
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Id. The statute also forbids contractors from price increases for services related to emergency cleanups for a period of 180 days following the emergency declaration. Id. § 396(c).
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| 24.
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Id. § 396(j)(1).
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| 25.
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W. Va. Code § 46A-6J-3 (2026).
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| 26.
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Id.
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| 27.
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Ala. Code § 8-31-3 (2026).
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| 28.
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Id. § 8-31-4.
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| 29.
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Id.
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| 30.
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Ga. Code Ann. § 10-1-393.4 (2026). Under the Georgia statute only the governor can declare a state of emergency that triggers price controls. Id.
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| 31.
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Id.
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| 32.
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940 Mass. Code Regs. § 3.18(1) (2026).
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| 33.
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Id.
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| 34.
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Id. § 3.18(2).
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| 35.
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Mass. Gen. Laws ch. 93A, § 2(c) (2026).
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| 36.
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15 U.S.C. § 45(a)(1).
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| 37.
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Id. § 45(a)(2).
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| 38.
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Iowa Code § 714.16 (2026).
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| 39.
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Id.
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| 40.
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Iowa Admin. Code § 61-31.1 (2026).
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| 41.
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Id.
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| 42.
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Press Release, FTC, FTC, DOJ and CFPB Warn Consumers About Potential Scams and Price Gouging in the Wake of Hurricanes and other Natural Disasters (Oct. 9, 2024), https://www.ftc.gov/news-events/news/press-releases/2024/10/ftc-doj-cfpb-warn-consumers-about-potential-scams-price-gouging-wake-hurricanes-other-natural [https://perma.cc/B4YD-BB8G].
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| 43.
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For more information on the FTC's activities with respect to gas pricing, see Oil and Gas, FTC, https://www.ftc.gov/news-events/topics/competition-enforcement/oil-gas [https://perma.cc/H7TD-RU9M] (last visited Mar. 20, 2026).
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| 44.
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Pub. L. No. 109-58, § 1809(a), 119 Stat. 594, 1125 (2005).
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| 45.
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The FTC's report can be viewed at FTC, Investigation of Gasoline Price Manipulation and Post-Katrina Gasoline Price Increases (2006), https://www.ftc.gov/sites/default/files/documents/reports/federal-trade-commission-investigation-gasoline-price-manipulation-and-post-katrina-gasoline-price/060518publicgasolinepricesinvestigationreportfinal.pdf [https://perma.cc/KF4V-QCKG].
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| 46.
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FTC Bureau of Econ., Gasoline Price Changes and the Petroleum Industry: An Update (2011), https://www.ftc.gov/sites/default/files/documents/reports/federal-trade-commission-bureau-economics-gasoline-price-changes-and-petroleum-industry-update/federal-trade-commission-bureau-economics-gasoline-price-changes-and-petroleum-industry.pdf [https://perma.cc/C2UR-DZD6].
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| 47.
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For further discussion of federal efforts to limit retail price gouging, see CRS Report R48916, Retailer Inventory and Pricing Behavior During Supply Chain Disruptions, by Michael Alan Havlin and Clare Y. Cho (2026).
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| 48.
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S.2321, § 3(a), (c), 119th Cong. (2025). There is a companion bill in the House, H.R. 4528, 119th Cong. (2025). These bills provide an affirmative defense for entities whose "ultimate parent entity earned less than $100,000,000 in gross revenue from goods or services provided in the United States during the 12-month period preceding the sale or offer" and who can show that the price increase is directly attributable to additional costs that the entity incurred and that are not within the entity's control.
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| 49.
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S.2321, § 2(3)(a), 119th Cong. (2025) (defining "exceptional market shock" to potentially include "any change or imminently threatened ... change in the market for a good or service resulting from ... war, military action, national or local emergency, abrupt or significant shift in trade policy, ... or any other cause of an atypical disruption in such market).
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| 50.
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H.R. 6318, § 3(a), 119th Cong. (2025).
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| 51.
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Id.
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| 52.
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See e.g., H.R. 7099, 117th Cong. (2022); S. 355, 118th Cong. (2023).
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