WASHINGTON, D.C.  — A newly introduced bill aims to crack down on corporate price gouging and protect Americans from “greedflation.” 

The Price Gouging Prevention Act, introduced by Senator Bob Casey (D-PA) and other sponsors last week, would ban grossly excessive price increases and authorize the Federal Trade Commission (FTC) and state attorneys general to enforce the ban. 

Casey says corporate price gouging has contributed to the increase in inflation. According to government data in his Greedflation series, inflation rose by 14 percent from July 2020 through July 2022, while corporate profits rose by more than 74 percent. The cost of basic groceries has jumped by 25 percent over the past four years, he said.

Corporate profits accounted for all of inflation from July 2020 through July 2021 and 41 percent of all inflation from July 2020 through July 2022, according to Federal Reserve research.

“Our bill will crack down on greedflation by finally prohibiting price gouging and holding corporations accountable for raising costs excessively,” said Casey. “It is long past time we take on big corporations and lower costs for families.”

The bill is endorsed by Unrig Our Economy and the Economic Security Project Action, among others.