Price Gouging Prevention Act of 2025
- Bill Number
- H.R. 4528
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-07-17: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-04T08:08:04Z
AI-Generated Summary
Price Gouging Prevention Act of 2025 (H.R. 4528)
Purpose
This legislation aims to prohibit price gouging on goods and services, particularly during periods of market disruption. It also expands the Federal Trade Commission's (FTC) enforcement authority to include independent civil actions for injunctions, penalties, and equitable relief, while requiring enhanced financial disclosures from public companies following market shocks.
Key Provisions
- Definitions (Section 2): Establishes terms such as "exceptional market shock" (including natural disasters, public health emergencies, or presidentially declared disasters), "unfair leverage" (e.g., dominant market position or critical trading partner status), and "grossly excessive price."
- Prohibition on Price Gouging (Section 3): Makes it unlawful to sell or offer goods or services at a grossly excessive price, regardless of supply chain position.
- Small entities (under $100 million in U.S. gross revenue) have an affirmative defense if price increases stem from uncontrollable costs.
- During exceptional market shocks, presumptive violations occur if a seller has unfair leverage or uses the shock as a pretext, and prices exceed pre-shock averages or competitor levels.
- Rebuttals require clear and convincing evidence of uncontrollable costs.
- Unfair leverage includes factors like $1 billion+ revenue, 40%+ seller market share, or discriminatory practices.
- FTC Enforcement (Section 3(f)): Treats violations as unfair or deceptive acts; grants the FTC authority to seek permanent injunctions, civil penalties (up to 5% of revenues for entities with unfair leverage), restitution, and other relief. The FTC must issue guidance on definitions like "grossly excessive price" and "excessive price" within 180 days.
- State Enforcement (Section 3(g)): Allows state attorneys general to bring parallel civil actions in federal or state courts, with notice requirements to the FTC.
- SEC Disclosures (Section 4): Requires public issuers to include detailed pricing, margin, cost, and strategy information in 10-Q or 10-K filings following an exceptional market shock quarter.
- Funding (Section 5): Appropriates $1 billion to the FTC for fiscal years 2025–2033.
Significant Changes to Existing Law
- Introduces a new federal prohibition on price gouging, expanding beyond existing FTC authority under the Federal Trade Commission Act.
- Grants the FTC independent litigation authority to pursue civil actions without relying solely on other agencies, including specific civil penalties tied to revenue.
- Mandates new SEC-mandated disclosures on pricing strategies and cost breakdowns for public companies during market shocks, adding to existing securities reporting requirements.
Potential Impacts
- Government Agencies: Significantly increases FTC resources and enforcement capabilities; requires SEC to issue implementing regulations within 180 days.
- Citizens: May lead to greater price transparency and reduced excessive pricing during emergencies, with potential for consumer restitution.
- International Relations: No direct provisions; however, requirements could indirectly affect U.S. businesses engaged in global trade by influencing pricing during supply disruptions.
Main Stakeholders Affected
- Large corporations and entities with market dominance or critical trading roles.
- Publicly traded companies subject to SEC filings.
- Consumers and residents of states during market shocks.
- Federal agencies (FTC and SEC) and state attorneys general.
Notable Legal, Constitutional, or Political Implications
- Establishes presumptions and rebuttal standards that shift evidentiary burdens in enforcement actions.
- Preserves state laws and allows concurrent state-federal claims without preemption.
- Raises potential issues around regulatory definitions of "dominant position" and market metrics, which could invite legal challenges regarding vagueness or overreach in enforcement.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Schakowsky, Janice D. [D-IL-9]
Cosponsors (16)
Rep. Deluzio, Christopher R. [D-PA-17], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Nadler, Jerrold [D-NY-12], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Tlaib, Rashida [D-MI-12], Rep. Jayapal, Pramila [D-WA-7], Rep. Tonko, Paul [D-NY-20], Rep. Khanna, Ro [D-CA-17], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. DeLauro, Rosa L. [D-CT-3], Rep. Craig, Angie [D-MN-2], Rep. Goodlander, Maggie [D-NH-2], Rep. Foushee, Valerie P. [D-NC-4], Rep. Casar, Greg [D-TX-35], Rep. Omar, Ilhan [D-MN-5], Rep. Jackson, Jonathan L. [D-IL-1]
Recent Actions
- 2025-07-17: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-17: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-17: Introduced in House
- 2025-07-17: Introduced in House
Bill Versions
- Price Gouging Prevention Act of 2025 — issued 2025-07-17 — PDF (20 pages)