Attorney General Kwame Raoul, alongside a coalition of 15 attorneys general, is calling on Congress to enact a national ban on price gouging. Although more than 40 states, including Illinois, have laws against price gouging, there is currently no federal legislation that specifically prohibits businesses from raising prices on essential goods during emergencies to increase profits.
Raoul stated, "Price gouging limits public trust in the marketplace and takes clear advantage of consumers." He emphasized that while his office's Consumer Fraud Bureau actively addresses exploitative practices by bad actors, a national ban would enhance efforts to tackle this issue comprehensively.
In their communication with Congressional leaders, Raoul and his colleagues argue that a nationwide prohibition would empower the federal government to address price gouging situations beyond the reach of individual states. They highlighted how events like the COVID-19 pandemic and the war in Ukraine disrupted supply chains nationally, creating opportunities for price exploitation not always addressable by state laws alone. A federal ban would support state measures and facilitate collaboration between state and federal authorities to curb illegal pricing practices within national supply chains.
The coalition further noted that such bans allow businesses to adjust prices to cover costs but prevent excessive increases aimed solely at profit during emergencies. They argued that stopping price gouging benefits both consumers and businesses by encouraging necessary production at critical times. This approach would help avoid long-term harm from setting excessively high prices and discourage hoarding behaviors triggered by rising prices or perceived shortages. Additionally, it would incentivize businesses to enforce anti-hoarding rules as they could not exploit wealthier customers through inflated pricing. Ultimately, prohibiting price gouging protects consumers from monopolistic practices where companies might otherwise raise prices without fear of consumer backlash or competitive undercutting.
Joining Attorney General Raoul in sending the letter were attorneys general from California, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Michigan, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Vermont.