Disaster Price Gouging Bill Caps Essential Goods at 10% Hike for 30 Days Post-Emergency

The new Stop Disaster Price Gouging Act steps in right after the President declares a major disaster, putting a hard stop on how much businesses can hike prices on essential items. For 30 days following the declaration, if you sell things like food, gas, medical supplies, or even rent out a hotel room, you generally can’t charge more than 10% above the price you were charging the day before the disaster hit. If you’re in the business of repairs or reconstruction, that 10% cap lasts even longer—a full 180 days. This federal effort is designed to keep the cost of survival and recovery manageable when communities are already reeling.

The 10% Rule: What’s Covered and What’s Not

This bill uses a broad definition of "essential consumer goods and services," covering everything needed for recovery: food, water, pet supplies, generators, building materials like plywood, transportation, and even storage. The 10% cap is the default limit. So, if a hotel room was $100 the day before the hurricane, it can’t be more than $110 for the next month. The bill does carve out some exceptions, which is where things get interesting. You can raise prices above 10% if you can prove that your own costs went up—say, your supplier charged you more for lumber—but even then, your markup can’t be more than 10% above your usual pre-disaster markup. This provision attempts to balance consumer protection with the reality of supply chain economics, but it could be tough for businesses to prove these cost increases in a way that satisfies the FTC.

Accountability and the Triple Damage Threat

Enforcement is a three-pronged attack. First, the Federal Trade Commission (FTC) is the main referee, treating violations as unfair or deceptive practices. Second, State Attorneys General can also sue on behalf of their residents. Third, and most powerfully for the average person, if you get ripped off, you can sue the violator yourself. If you win, the court must award you attorney fees and costs. Crucially, if the court finds the price gouging was done willfully—meaning the business knew exactly what they were doing—they must triple the damages you recover. This triple-damage clause is a serious deterrent for anyone thinking about exploiting a disaster situation. Any penalties the FTC collects go straight into a fund to help the affected disaster communities, which is a neat way to make the bad actors pay for the cleanup.

The Fine Print for Businesses and Landlords

While the bill is clearly focused on protecting consumers, it puts significant compliance pressure on businesses, especially those dealing with repair services, who face a six-month price cap. For landlords and property managers, the bill acknowledges that rental price increases above 10% are okay if they cover costs for repairs or additions beyond normal upkeep, or if the tenant had already agreed to the higher rent before the disaster. This prevents landlords from getting stuck covering massive repair costs while simultaneously being prevented from adjusting rent, but it also means property owners need to be meticulous about documenting every cost increase and repair expense. The medium vagueness in defining “willfully” for the triple damages could also lead to protracted legal battles, as businesses will fight hard to prove their actions weren't malicious, just costly.