Price-Gouging
is
Unrelated to
Supply and Demand
Violates
The Sanctity of
The Free Enterprise Market

Price-Gouging
Dangerous During
A National Economic Crisis

An Act Providing for Establishment of
"Competition Law:”
Initiating Creation of The First-Degree Federal Felony of
Price-Gouging;
and, 
Directing The Department of Justice To Institute A Price-Gouging Investigation Division.

NOVEMBER 14, 2008

SPECIFIC SOLUTION BY FEDERAL STATUTE #

An Act Providing for Establishment of "Competition Law:” Initiating Creation of The First-Degree Federal Felony of Price-Gouging; and,  Directing The Department of Justice To Institute A Price-Gouging Investigation Division.

SUGGESTED LANGUAGE

“The Public Policy of this Act is founded upon potential urgent situations, which may transpire during the continuing perilous US economic crisis.  The primary purpose of this Act is to   safeguard consumers against   unconscionable pricing designed to exploit them.  And, other predatory commercial practices which violate the sanctity of the free market. This act is   identified as "competition law;” a new category of law to be judged superior to other anti-trust Statutes.  In the United States, price-gouging crimes are a constitutional valid exercise of the police power.”  

“The United States Department of Justice is mandated to establish an additional investigation division for the exclusive purpose of scrutinizing potential predatory pricing practices; hereby, identified as price-gouging.  It is to commence investigations in each state market. Such inquiries are to be given superior departmental   priority over other anti-trust crimes.  The Department will possess broad discretion in investigation and prosecution of the predatory pricing of goods and services.”

“Price gouging is hereby defined any predatory pricing conduct. This Act prohibits raising prices to "unconscionable" levels. No business entity may charge any price for a product or service in excess of the reasonable parameters and scope of its true value.    It is a violation for any person to sell or rent or offer to sell any merchandise or services which   are consumed or used to preserve, protect, or sustain life, health, safety, or comfort of persons or their property; or, are otherwise consumed or used as a direct result of an emergency.  One definition of price-gouging can be inferred; either, where   pricing is manifestly inconsistent with a competitive free market; or, results in windfall profits. The felony   exists when any seller charges extreme exorbitant prices consistent with  anti-competitive free market restraints on trade.  Similar to illegal anti-trust  conduct which indicates the existence of a  coercive predatory monopoly. Particularly,  where  prices abruptly rise  well above the market rate which would prevail in a competitive environment.  Such   predatory practices are to be considered evidence of a first-degree felony of price-gouging.”

“A clear threshold for   price gouging violations is hereby established. Abusive predatory price-gouging is a crime even when no civil emergency exists.   Price-gouging exists when prices increase   or mark-ups of more than 25 percent occur within a 30 day period.  In the area of essential commodities, defined as the necessities of life, a charging  price-gouging is appropriate where unconscionable price increases range  from 15%-25%.  It is unlawful to sell essential commodities; including food, energy etc., for an amount 'grossly exceeding' the average price for commodity during the prior 30 days. If a civil emergency does exist, a violation occurs when a supplier of essential goods or services sharply raises the prices in anticipation of; or,  during a civil emergency.  Or, otherwise, when suppliers cancel or dishonor contracts in order to take unconscionable predatory advantage related to such an emergency.   Under these circumstances, such pricing practices trigger an automatic presumption as evidentiary proof   "unreasonably excessive predatory pricing” has occurred.  Thereby, to be considered a De Facto [Per Se] presumption of price-gouging as a matte at law. ”     

“This Act   is to be interpreted in the broadest jurisprudential construction; and, most importantly, does not depend on whether or not a civil emergencies exists within of the United States.   Several factors may be used, within The Department's discretion, as potential guidelines to determine whether or not prices are illegally high, unreasonable, excessive; or, unconscionable.    Such as prices   exceeding those charged for comparable goods and services in the same market area both before and at the time of a civil emergency.  In addition to, including, but not restricted to, relevant facts   regarding average pricing over the prior 30 days. ” 

“Proof of a violator's the knowledge and intent is sufficient   to charge price-gouging.    The Department's powers to prosecute   are not dependent upon whether or not the practices are   illegal. If The Department   establishes a "gross disparity" in prices charged, the institution of a criminal case must ensue. ”   

“This Act applies to all sellers in the chain of distribution when the product sold was located anywhere within The USA prior to sale.  All   sellers are covered, even when the sale occurred outside their state or nation. ”   

LEGAL SANCTIONS

”This Act punishes each price-gouging violation by: incarceration in a federal facility for a period of not less than 5 years; and, contemporaneously, mandates imposition of a $100,000.00 fine for each count. ”  

“It is within the Court's jurisdiction and discretion to increase criminal penalties for individuals, businesses or corporations found guilty of price-gouging of up to $150 million for corporations; and, up to $2 million for individuals and a jail sentence of up to 10 years. The courts may levy a fine of $500.000.00 per violation, plus three times the total profits for such violation. ”  

“In addition, The federal government may petition the state of incorporation to hold a corporation's charter as null and void as a violation of public policy.  The corporate veil may be pierced, for any inartificial form of predatory price-gouging; thereby,  permitting civil legal liability amounting to  treble damages.  A  foreign nation or foreign corporation [their employees, management, partners or agents etc.] found guilty of price-gouging is to be subjected to a debarment from US business activities for a period determined by the court.”

OUR RATIONALE:  To follow…