Rep. Katie Porter Introduces Bill to Crack Down on Big Corporations Coordinating Price Hikes
Congresswoman’s legislation closes loopholes in antitrust laws that enable corporate abuse
Washington, September 7, 2022
Tags: Protecting Consumers
WASHINGTON—Congresswoman Katie Porter (D-CA) has introduced legislation that would strengthen accountability for big corporations that engage in coordinated price hikes. The Competitive Prices Act closes loopholes that price-gouging corporations exploit to escape accountability in antitrust cases.
“Big corporations are gouging consumers to push their profit margins to record highs,” said Porter, who was a consumer protection advocate before serving in Congress. “My Competitive Prices Act will empower consumers, crack down on corporate abuse, and help families afford basic necessities.”
Current law does not adequately deter two or more dominant companies from engaging in tacit agreements to raise prices. Between 2009 and 2016, for example, Sanofi and Novo Nordisk, the two dominant insulin manufacturers, issued 13 tandem price increases, most within 24 hours of each other. The Competitive Prices Act gives consumers new tools to hold these big corporations accountable through our justice system.
The Competitive Prices Act is cosponsored by Representatives Jerry Nadler (D-NY), David Cicilline (D-RI), Hakeem Jeffries (D-NY), and Pramila Jayapal (D-WA). It is also endorsed by American Economic Liberties Project, Center for Economic and Policy Research (CEPR), Demand Progress, Economic Policy Institute, Food and Water Watch, Groundwork Collaborative, Indivisible, Liberation in a Generation, Revolving Door Project, and Small Business Majority.
A consumer finance expert and single mom, Porter has consistently worked in Congress to crack down on corporate abuse that hurts families. Her legislation to stop Big Pharma from profiting off unreasonable price hikes became law as part of the Inflation Reduction Act. The House passed her bill to hold Big Oil accountable for price gouging consumers at gas pumps. Porter stood up to leaders of both parties to oppose a giveaway to tax preparation companies that would have made it harder for taxpayers to file for free.