Hurricane Katrina Price Gouging Probe

The Federal Trade Commission announced September 21, 2005, that the federal government will conduct a Hurricane Katrina price gouging probe.

Coming on the heels of a Congressional hearing the week before "on the impact of Hurricane Katrina on gasoline supplies and prices," on September 8, 2005, 95 Democratic members of Congress had asked U.S. Attorney General Alberto R. Gonzales and Federal Trade Commission (FTC) Chair Deborah Platt Majoras "to investigate the pricing practices of the oil industry." 

However, as David Sirota wrote on September 21st, this is both "good news" and "bad news."

The "good news" is, he wrote, that "Democratic governors have embarrassed the federal government into acknowledging the oil price gouging issue, as the Federal Trade Commission (FTC) today announced a formal probe."

The "bad news" is, he wrote, that "President Bush made sure to preempt any real investigation into price gouging by his financial backers in the oil/gas industry" last year when he appointed former ChevronTexaco lawyer Deborah Platt Majoras as Chairman and Commissioner of the FTC.

Prophecy? "FTC Chairman Deborah Majoras, who has been criticized by Democrats for her ties to oil companies, may decide to open a few investigations just to 'do something' and provide the White House with political cover." --S.M. Oliva, Mises Economics Blog, September 2, 2005.

SourceWatch Resources

 * Hurricane Katrina: Gas and Oil Shortage
 * Hurricane Katrina: Profiteering
 * peak oil: we have oil

Congressional Queries & Testimony

 * Press Release: "Langevin Fights Gasoline Price Gouging," Congressman Jim Langevin (D-RI), September 8, 2005.
 * Press Release: "Congress Concerned About Gas Price Gouging. Members demand action on price spikes in wake of hurricane Katrina," Congresswoman Madeleine Z. Bordallo, Delegate from Guam, September 9, 2005.
 * "Hinchey, Congressional Coalition call for FTC & DOJ investigations into gas price fixing," MidHudsonNews.com, September 9, 2005. Congressman Maurice Hinchey.
 * Press Release: "DeFazio Calls For Investigation Into Gas Price Spikes Following Hurricane Katrina," Rep. Peter DeFazio (D-Springfield), September 14, 2005.
 * "Wyden, Fellow Democrats Call for Safety Measures to Protect Consumers Against Gas Price Gouging", Senator Ron Wyden (D-Oregon), September 14, 2005.
 * Senate, Congressional Record, September 24, 2005.
 * "Commerce Dems Call for Senate Investigation of Post-Katrina Gas Price Gouging," Senator Harry Reid, September 27, 2005.

Testimony & Reports

 * "Wyden Testifies on Strategies to Reduce Gasoline Price Gouging. Senator advocates new 'Do Not Gouge' measures to force FTC action for consume," Senator Ron Wyden, September 21, 2005.

Articles & Commentary

 * "Wyden Report Details FTC Failure to Fight High Gasoline Prices. Senator calls for protection for American consumers, families by 'new, aggressive leadership' at the Federal Trade Commission," Senator Ron Wyden (D-Oregon), June 15, 2004.
 * David C. Lundsgaard, "Can Antitrust Law Help with the Gas Price Crisis? Yes, But Not By Trying to Block Shell's Decision to Close Its Bakersfield Refinery," FindLaw's Writ, July 22, 2004.
 * S.M. Oliva, "Bush and Oil: Partners in Corporatism," Mises Economics Blog, April 29, 2005.
 * S.M. Oliva, "Maybe we need a hotline to report 'Regulatory Gouging'," Mises Economics Blog, September 2, 2005.
 * "Members of Congress Call Refinery Pricing Into Question," NACS Online, September 13, 2005.
 * Tom Doggett, "FTC investigating gas price profiteering," Reuters (ABC News), September 21, 2005.
 * Dana Garrett, "Yet Another Phony Investigation Ordered by Bush," Delaware Watch Blogspot, September 21, 2005.
 * Nico, "FTC Head Overseeing Gas Gouging Probe Was Chevron Lawyer," Think Progress, September 22, 2005.
 * Peter Kaplan, "FTC head doubts new gasoline profiteering laws," Reuters, September 22, 2005.
 * Molly Ivins, "Government by temper tantrum," Creators Syndicate (Working for Change), September 22, 2005.