PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Congressional Research Service
Version 00 · Introduced in Senate · Sep 21, 2012
Protecting Patients and Hospitals From Price Gouging Act - Authorizes the President to issue an executive order declaring a market shortage for six months with regard to one or more vital drugs if the total supply of all clinically interchangeable versions of a drug regulated by the Food and Drug Administration (FDA) is inadequate to meet the current or projected demand at the user level.
Defines a "vital drug" as any drug or biologic used to prevent or treat a serious or life-threatening disease or medical condition, for which there is no other available source with sufficient supply available.
Makes it unlawful, when the President issues such an executive order, for any person to sell vital drugs at a price that: (1) is unreasonably excessive, and (2) indicates that the seller is taking unfair advantage of the circumstances related to a market shortage to increase prices unreasonably during that period.
Showing the opening paragraphs of the official summary.
Gives the Attorney General authority to enforce penalties under this Act.
Makes any person who sells, or offers to sell, any vital drug during a declared market shortage with the knowledge and intent to charge a price unreasonably excessive under the circumstances guilty of an offense and subject to injunction and penalties. Applies such sanctions, except to a hospital or a physician, in the geographical area where the vital drug market shortage has been declared and to all wholesalers and distributors in the chain of distribution.
Sets forth factors for the Attorney General to consider in determining whether an alleged violator's price was unreasonably excessive.
Makes a declaration under this Act terminate if: (1) there is enacted a law terminating the market shortage after a national market shortage is declared, or (2) the President issues a proclamation terminating the declaration. Authorizes the President to renew such a market shortage declaration if the severe shortage continues to affect the health and well-being of citizens beyond the initial six-month period.
People & committees
Sen. Schumer, Charles E. [D-NY] · D–NY
Legislative record
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Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced in Senate
Primary sources
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Source last updated: Aug 14, 2025. Consult Congress.gov for the current record.
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