Press Releases

Chairman Nadler, Congressmen Neguse, Cicilline & Sensenbrenner Urge Federal Action on Price Gouging Amidst COVID-19

Washington, March 18, 2020

Washington, D.C. – Today, House Judiciary Committee Chairman Jerrold Nadler (D-NY), along with Congressman Joe Neguse (D-CO), Subcommittee on Antitrust, Constitutional and Administrative Law Chair David Cicilline (D-RI), andSubcommittee on Antitrust, Constitutional and Administrative Law Ranking Member Jim Sesenbrenner (R-WI) sent a letter to the U.S. Department of Justice urging immediate and decisive steps to stop extensive price gouging of consumer health products happening as a result of the Coronavirus pandemic. While several retailers have taken steps to maintain access to items such as hand sanitizer and cleaning supplies, there have been numerous reports of merchants small and large preying on consumers during this crisis by charging outrageous prices for these essential items.

"It is unacceptable that Americans across the country have been forced to pay higher prices for basic essentials and supplies in the wake of the COVID-19 pandemic," said Chairman Nadler. "No one should ever face price gouging and especially not during a crisis. TheDepartment of Justice must act expeditiously to protect Americans from price gouging as we navigate this time of uncertainty."

"We have all seen troubling accounts over the last few days of extensive price gouging in the wake of supply shortages and heightened demand," said Congressman Joe Neguse. "Absent a coordinated Federal response, I fear many preventative products will be out of reach for American consumers, thereby placing their health and their family’s health at risk. I urge the Department of Justice to take decisive and immediate action to combat these practices and ensure the health and safety of American consumers."

"During every emergency, we hear more and more about rampant price gouging that limits access to basic supplies and drives up prices for folks simply trying to get by,"Congressman Cicilline said."The coronavirus pandemic has been no different. While local and national media outlets have exposed much of this practice and individual states have worked to curb price gouging, there’s no question that a coordinated effort spearheaded by federal enforcers is needed to end this predatory behavior."

Several state attorneys general have already taken action against price gouging or are in the process of doing so, including Colorado, Washington, Texas, California, New York, Michigan, Tennessee and Pennsylvania. Additionally, companies like Amazon, Walmart, and eBay have made efforts to curb price gouging on their e-commerce websites. Due to the pervasiveness of price gouging across the country and the growing spread of coronavirus, it is critical that the DOJ play a key role in these efforts.

“To the extent the Department requires additional statutory tools and/or resources from the U.S. Congress to appropriately address this issue, the undersigned remain ready and willing to discuss the same with you in greater detail,” reads the letter. “It is critical that the DOJ play a central role in ensuring that consumers have access to the items they need to protect themselves, their families, and their communities.

Read the full letter here.

Yesterday, Chairman Nadler and Congressman Cicilline, along with Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Subcommittee on Consumer Protection and Commerce Chair Jan Schakowsky (D-IL), sent a letter to the Federal Trade Commission, urging them to take steps to protect American consumers from price gouging during the COVID-19 pandemic.

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