HOUSE PASSES WALDEN-BACKED LEGISLATION TO PROTECT CONSUMERS FROM PRICE GOUGING AT THE PUMP

May 3, 2006 - Washington, D.C. -
In an ongoing effort control the rising cost of gas prices, U.S. Congressman Greg Walden, R-Ore., joined with colleagues on both sides of the aisle today to pass key legislation protecting consumers from gasoline price gouging.  H.R. 5253, the Federal Energy Price Protection Act of 2006, passed the House of Representatives by a bipartisan vote of 389-34 and now heads to the Senate for their consideration.
 
“Last fall we held a number of hearings in the Energy and Commerce Committee to address the rising cost of gasoline and to ensure that consumer protection remained at the forefront of our efforts and this bill incorporates many of our findings.  As I said then, Oregonians, especially those in rural areas, pay a hefty price at the pump and enacting strong policies targeted at price gouging is critical. Americans deserve to know that supply and demand are impacting prices at the pump, not the unethical actions of those willing to prey on consumer vulnerability,” said Walden, who requested a study by the Government Accountability Office last year to evaluate the oversight operations of the Commodity Futures Trading Commission with specific focus on volatility and potential abuses in energy product trading.
 
He added, “Although price gouging is only one piece of the complex, multi-faceted puzzle of energy policy, it is an important step forward for both consumer protection and consumer confidence.”
 
H.R. 5253 prohibits price gouging—at any time—in the market for gasoline, diesel fuel, crude oil, home heating oil and biofuels.  Specific provisions in the legislation:
Direct the Federal Trade Commission (FTC) to establish a national definition for “price gouging,” avoiding varied definitions and interpretations at the state level;
Provide for strong civil enforcement by the FTC and state attorney generals and strong criminal enforcement by the U.S. attorney general and the Department of Justice;
Establish civil penalties for price gouging at a level of three times the ill-gotten gains for both wholesale and retail sellers.  Wholesale violations would also be subject to a per day fine for a continuing violation.  Civil penalties collected would be deposited into either a fund used for paying compensation to consumers for violation of state consumer protection laws or into a state’s general fund;
Establish criminal penalties for wholesale violations of imprisonment for up to two years or a fine of up to $150 million, or both; and,
Establish criminal penalties for retail violations of imprisonment for up to two years or a fine of up to $2 million, or both.
 
Earlier today, the House Energy and Commerce Committee, of which Walden is a member, held a hearing on legislation authorizing the National Highway Traffic Safety Administration to alter passenger car fuel efficiency standards.  Additionally, as chairman of the House Subcommittee on Forests and Forest Health, Walden has held a number of hearings, including one last Thursday, on the utilization of woody biomass for energy development.
 
Congressman Walden is in his fourth term representing the people of Oregon’s Second District, which includes twenty counties in central, southern and eastern Oregon.  He is co-chair of the Northwest Energy Caucus and vice chair of the Renewable Energy Caucus, both bipartisan organizations in the House.