U.S. Senator Bob Casey of Pennsylvania has received support, including that of Vice President Kamala Harris, for his Anti-Price Gouging Act. The bill would ban excessive price gouging at the federal level, allowing the Federal Trade Commission (FTC) and state attorneys general to effectively enforce the ban.
Since November 2023, Senator Casey has been actively investigating cases of corporate price gouging that he believes have placed a financial burden on American families. The proposed legislation would prohibit companies from engaging in what Senator Casey calls “greedflation,” the practice of drastically raising prices to excessively increase profit margins.
The Price Gouging Prevention Act is inspired by a similar state-level law in Pennsylvania. It addresses problems that became apparent during the COVID-19 pandemic, such as significant price increases by large businesses, ostensibly to cover increased costs. Although the inflation rate has fallen below 3% for the first time since 2021 and operating costs for businesses have fallen, consumer prices remain high.
In addition, Senator Casey has conducted extensive research into corporate pricing strategies, including public interviews with major retailers such as Target, Walmart, and Amazon. His findings have been highlighted in various reports and public hearings, with a focus on the adverse impacts of these practices on the ordinary consumer.
In February 2024, concerns were raised about Wendy’s Company’s price increases, which Casey criticized for disproportionately affecting working families. Following public criticism, Wendy’s withdrew its price increase initiative.
In addition to the Price Gouging Prevention Act, Senator Casey has also introduced the Shrinkflation Prevention Act. This bill targets companies that reduce product size without lowering prices – a tactic known as shrinkflation.
The senator’s ongoing efforts include releasing several reports as part of his Greedflation series, detailing how companies exploit inflation to increase their profits at the expense of consumers. These reports cover various sectors, including food and agriculture, and expose deceptive practices such as hidden fees and the “pink tax,” which refers to higher costs for products aimed at women.
