Rep. Courtney Takes Action Against Pump Price Gouging, Stiffens Penalties at all Levels of Gas Production

Press Release

Rep. Courtney Takes Action Against Pump Price Gouging, Stiffens Penalties at all Levels of Gas Production

Congressman Joe Courtney passed up a ride today on Air Force One with President George Bush to attend the United States Coast Guard Academy graduation to remain in Washington, DC to step up his campaign against record gas prices that are crippling eastern Connecticut's families and industry.

Congressman Courtney addressed the nation from the floor of the United State House of Representatives to discuss high energy costs, and the Congressman also addressed the issue during a Capitol Hill press conference.

"Previous Congresses may have sidestepped this issue time and time again, but today I am proud to lead the debate to add real teeth to anti-price gouging laws currently on the books," stated Congressman Courtney. "It was long past due to stop the ‘slap-on-the-wrist' policies of the past, and implement true accountability and penalties for what has become an unsustainable energy marketplace."

Congressman Courtney touted two important pieces of legislation today during a Capitol Hill press conference. Congressman Courtney is an original cosponsor of The Federal Price Gouging Prevention Act of 2007 and also supported The No Oil Producing and Exporting Cartels Act of 2007 (NOPEC), which would allow the Department of Justice to enforce U.S. antitrust laws against OPEC member nations.

Because the federal government does not have a clear definition of what price gouging is, the FTC can do little more than study the issue. Studies are not enough. Congress must provide the appropriate tools to investigate and crack down on price gouging and other forms of market manipulation.

To date, the FTC has never brought a gas price gouging case to court. The problem is the federal government has never accurately defined price gouging or given the FTC the tools to properly prosecute price gouging.

· The Federal Price Gouging Prevention Act would provide immediate relief to consumers by giving the FTC the explicit authority to investigate and punish those who artificially inflate the price of energy.

· The FTC would be empowered to exercise this authority at each stage of the energy production and distribution chain, with an emphasis on those who profit most.

· It would strengthen penalties by providing new civil penalties, with up to triple damages of the profits gained by the violation, directing penalties collected from price gougers to go towards the Low Income Home Energy Assistance Program (LIHEAP).

In the past, courts have ruled that OPEC is protected from prosecution by the Foreign Sovereign Immunities Act (FSIA) and the so-called "act of state" doctrine. The No Oil Producing and Exporting Cartels Act of 2007 (NOPEC) clarifies the law:

1. NOPEC amends the Sherman Antitrust Act by making it illegal for foreign states to engage in collusive behavior with any other foreign state or person to limit the production or distribution, set or maintain the price, or otherwise act in restraint of trade with regard to oil or petroleum products.

2. NOPEC specifically would amend the Foreign Sovereign Immunities Act ("FSIA") so that OPEC nations could be subject to U.S. jurisdiction. Currently, FSIA arguably provides immunity to foreign states from governmental actions it takes, but not commercial activities. In 1979 a Federal District Court ruled that OPEC's cartel activity was governmental activity and therefore immune from prosecution. NOPEC changes this result.

3. NOPEC also specifies that U.S. Federal courts would be able to consider lawsuits against OPEC members. In 1981 a Federal Court of Appeals declined to hear a case against OPEC based on the "act of state doctrine," which holds that a Federal court will not consider a case that will require it to judge the legality of the sovereign acts of a foreign nation. NOPEC changes this result by expressly stating that the act of state doctrine will not bar suits against nations participating in an oil cartel.

4. NOPEC gives the Department of Justice the authority to prosecute OPEC nations for entering into collusive agreements in violation of well-established antitrust laws with regard to oil or petroleum products.

"While I would have enjoyed personally greeting the graduating Cadets of the Coast Guard Academy, I had no choice but to remain in Washington to fight for eastern Connecticut's families against the obvious greed of ‘Big Oil'," stated Congressman Courtney.

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