ALEXANDRIA, Va. – As price gouging legislation moves through the U.S. House of Representatives, NACS continues to educate Congress about the facts behind H.R. 1252, the Federal Price Gouging Prevention Act.

In its current form, H.R. 1252 "will punish honest, small business retailers for violating an ambiguous definition of price gouging," NACS wrote in a letter sent to all U.S. House members yesterday. Unless the language is amended, the punishment outlined in the bill threatens local retailers with fines up to $150 million and 10 years in jail for violating anti-price gouging standards.

Later today, the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations is scheduled to hold hearing on price gouging. The subcommittee, which is chaired by Representative Bart Stupak (D-MI), the author of H.R. 1252, will not receive testimony from any witnesses representing the convenience and petroleum retailing industry despite pleas from NACS that retailers must be represented on the panel.

"Unfortunately, these standards are not sufficiently clear to provide retailers with adequate guidance regarding what they can and cannot do with regards to motor fuel prices. Faced with such significant penalties, retailers cannot be expected to rely upon ambiguous statutory provisions for guidance," wrote NACS.

"The question is not whether the legislation is well intended; rather, whether the mechanics of the legislation will permit retailers to operate in a functioning, competitive free market," continued NACS, adding, "To accomplish that objective, H.R. 1252 must be amended to clarify what constitutes a violation, to accurately describe the competitive market within which retailers will be held accountable, and to recognize replacement costs as a legitimate cost of business. If such amendments are not made to this legislation, we urge you to oppose the bill."

NACS is also taking its advocacy efforts to the airwaves. On May 17, NACS Vice President of Government Relations John Eichberger and Vice President of Communications Jeff Lenard appeared on CNBC and CNN, respectively, to communicate retailer concerns about current price gouging legislation. NACS has also talked to dozens of newspaper reporters this month about the issue.

To view the complete letter NACS sent to U.S. House members, click here (PDF). NACS members who would like additional information about H.R. 1252 should contact Eichberger at jeichberger@nacsonline.com.