No GOUGE Act

Bill Number: H.R. 6318
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Foreign Trade and International Finance
Status: Introduced
Latest Action: 2025-11-28: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, 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: 2026-02-24T09:05:39Z

AI-Generated Summary

Purpose of the Legislation

The No GOUGE Act (H.R. 6318) aims to prevent companies from excessively raising prices on goods affected by new or planned U.S. tariffs, treating such increases as price gouging if they exceed the direct costs caused by the tariffs. It seeks to protect consumers from unfair price hikes that exploit tariff policies, particularly those imposed starting in 2025, while allowing reasonable pass-through of tariff-related costs.

Key Provisions

Definitions:
"Tariffed good" includes final products, U.S.-assembled goods with tariffed components, components themselves, or items with announced ("planned") tariffs, all starting from tariffs effective after January 20, 2025.
"Tariff-related shock date" refers to periods with multiple new tariffs or major rate increases (over 25 percentage points) announced within 30 days.
"Unfair leverage" applies to large entities (e.g., those with over $1 billion in U.S. goods revenue, adjusted for inflation) or others defined by regulations.
Exempts small businesses (under $100 million in annual U.S. goods revenue, adjusted for inflation).

Prohibition on Price Gouging:
Bans selling or offering tariffed goods at "unreasonably high" prices for 5 years after a tariff takes effect or is announced.
An "unreasonably high" price occurs if the increase exceeds direct tariff costs, plus any legitimate additional costs (excluding executive pay raises or stock buybacks). Baseline prices are averaged from the 180 days before the tariff.
For planned tariffs, no costs count until the tariff actually starts.

Presumption of Violation:
On shock dates, companies with unfair leverage are presumed to violate the law if prices exceed the 180-day pre-tariff average.
Companies can rebut this with clear evidence that the full increase matches tariff costs plus valid extras.

Enforcement:
The Federal Trade Commission (FTC) enforces via its existing powers under the FTC Act, treating violations as unfair or deceptive practices, with civil penalties.
States can sue on behalf of residents for injunctions, damages, or relief, after notifying the FTC; the FTC can intervene.
FTC must create a consumer reporting system (phone, mail, website) within 180 days and set rules for investigating reports.

Regulations and Reporting:
FTC can issue rules, consulting trade agencies like the U.S. Trade Representative and Customs and Border Protection.
Annual reports: U.S. International Trade Commission (ITC) and Bureau of Labor Statistics (BLS) track prices of tariffed goods from large companies ($1 billion+ revenue); BLS may add survey questions if needed.
FTC reports on enforcement and its effects on consumer prices.

Other Rules:
Does not preempt state or local laws.
Applies to all supply chain positions (e.g., manufacturers, retailers).

Significant Changes to Existing Law

Introduces a new federal ban on tariff-linked price gouging, which does not exist in current U.S. law; prior anti-gouging rules are mostly state-level and not tied to trade policies.
Expands FTC authority to regulate pricing tied to government actions like tariffs, integrating trade data into consumer protection enforcement.
Creates presumptions of violations for large firms during tariff surges, shifting the burden of proof and differing from standard FTC deceptive practices cases.
Allows coordinated state-federal actions and mandates interagency reporting, enhancing oversight of trade impacts on prices.

Potential Impacts

On Citizens: Could lower costs for consumers by limiting excessive price passes from tariffs on imported or affected goods (e.g., electronics, autos), potentially stabilizing prices during trade policy shifts.
On Government Agencies: Increases workload for FTC (enforcement, reporting, consumer hotline), ITC, and BLS (price tracking); promotes better data sharing on trade and inflation.
On Businesses: Restricts pricing flexibility for large firms during tariffs, encouraging cost absorption or U.S. production shifts; small businesses are exempt, reducing burden on them.
On International Relations: May signal U.S. commitment to fair trade by curbing domestic profiteering from tariffs, but could complicate relations if foreign exporters view it as protectionist or if it leads to disputes over tariff cost calculations.

Main Stakeholders Affected

Consumers: Primary beneficiaries, protected from inflated prices on tariff-impacted goods like imported components or assembled products.
Large Corporations: Heavily regulated, especially those with high U.S. revenues; face investigations, fines, and rebuttal burdens if prices rise post-tariff.
Small Businesses: Largely exempt, allowing them to adjust prices without federal scrutiny.
Government Entities: FTC (lead enforcer), state attorneys general (litigation role), ITC/BLS (data providers), and trade officials (consultation).
Suppliers and Retailers: Across supply chains, must justify price hikes or risk liability.

Notable Legal, Constitutional, or Political Implications

Legal: Relies on the FTC Act for enforcement, potentially expanding "unfair practices" to include tariff-exploited pricing; state actions could lead to varied enforcement nationwide, raising consistency concerns. Courts may scrutinize "unfair leverage" definitions and cost attributions.
Constitutional: Involves interstate commerce regulation under Congress's Commerce Clause power, but could face challenges if seen as overregulating private pricing or interfering with executive tariff authority.
Political: Targets corporate excess amid potential 2025 tariff expansions (e.g., under a new administration), appealing to consumer advocates; may spark debates on government overreach in markets versus protecting against trade war profiteering, with implications for future trade bills.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. DeLauro, Rosa L. [D-CT-3]

Cosponsors (23)

Rep. Craig, Angie [D-MN-2], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. McGovern, James P. [D-MA-2], Rep. Nadler, Jerrold [D-NY-12], Rep. Velázquez, Nydia M. [D-NY-7], Rep. Schakowsky, Janice D. [D-IL-9], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Pocan, Mark [D-WI-2], Rep. Jayapal, Pramila [D-WA-7], Rep. Tlaib, Rashida [D-MI-12], Rep. Lee, Summer L. [D-PA-12], Rep. Randall, Emily [D-WA-6], Rep. Ramirez, Delia C. [D-IL-3], Rep. Simon, Lateefah [D-CA-12], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Johnson, Julie [D-TX-32], Rep. DeSaulnier, Mark [D-CA-10], Rep. Espaillat, Adriano [D-NY-13], Rep. Hoyle, Val T. [D-OR-4], Rep. Pingree, Chellie [D-ME-1], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Thanedar, Shri [D-MI-13]

Recent Actions

2025-11-28: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, 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.
2025-11-28: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, 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.
2025-11-28: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, 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.
2025-11-28: Introduced in House
2025-11-28: Introduced in House

Bill Versions

No Gratuitous Overcharging for Ubiquitous Global Exports Act — issued 2025-11-28 — PDF (17 pages)