Competitive Prices Act.
- Bill Number
- H.R. 8633
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-04-30: Referred to the House Committee on the Judiciary.
- Last Updated
- 2026-05-20T20:24:33Z
AI-Generated Summary
Purpose
The Competitive Prices Act (H.R. 8633) aims to set clear standards for proving claims of "consciously parallel pricing coordination" (companies acting similarly on prices without explicit agreement) in civil lawsuits under the Sherman Act, a key U.S. antitrust law that bans contracts, combinations, or conspiracies restraining trade. It clarifies what counts as an illegal "contract, combination in the form of trust or otherwise, or conspiracy."
Key Provisions
- Definitions:
- Parallel conduct: Two or more companies acting similarly to raise, lower, maintain, or manipulate prices, output, supply, or other competitive terms for similar products/services (doesn't have to be identical).
- Plus factors: Evidence beyond parallel conduct suggesting a conspiracy, such as motive to coordinate, actions against a company's self-interest, sharing sensitive info, or market conditions favoring collusion (lists 9 specific examples).
- Pleading Standards (for early court challenges like motions to dismiss):
- Plaintiffs can survive by alleging parallel conduct plus at least two plus factors.
- No need for direct proof of a conspiracy, facts ruling out independent decisions, or a story more likely than the defendant's explanation.
- Proof Standards (for later stages like summary judgment):
- Plaintiffs need evidence (direct, indirect, or both) that could convince a jury of a conspiracy.
- No requirement to prove independent action is impossible or that their evidence is stronger overall (court views evidence favorably to plaintiff at this stage).
- Rule of Construction: Does not limit existing antitrust remedies like damages or injunctions.
Significant Changes to Existing Law
- Lowers the burden on plaintiffs in antitrust cases involving parallel pricing, making it easier to advance claims past early dismissal and summary judgment.
- Rejects requirements from prior court rulings (e.g., needing to "exclude the possibility of independent action" or prove a conspiracy is more plausible than lawful behavior).
Potential Impacts
- On Government Agencies: Easier enforcement for the Department of Justice (DOJ), Federal Trade Commission (FTC), and state attorneys general in civil antitrust suits.
- On Citizens and Businesses: More lawsuits against companies suspected of coordinated pricing, potentially leading to lower prices for consumers but higher legal costs and risks for businesses in concentrated industries.
- On Courts: Shifts more antitrust cases to trial by relaxing pleading and proof hurdles.
Main Stakeholders Affected
- Plaintiffs: Consumers, injured competitors, DOJ, FTC, and state attorneys general (easier to bring and win cases).
- Defendants: Businesses, especially in industries with similar pricing (e.g., airlines, tech, pharmaceuticals) facing increased litigation risk.
- Courts and Legal System: Handle more antitrust claims reaching full trials.
Notable Legal, Constitutional, or Political Implications
- Legal: Specifically tailors federal pleading rules (under Fed. R. Civ. P. 12 and 56) for Sherman Act cases, potentially overriding Supreme Court precedents like Bell Atlantic Corp. v. Twombly (2007).
- Constitutional: Could raise due process questions for defendants if seen as too lenient on plaintiffs, but preserves jury trials and full remedies.
- Political: Promotes aggressive antitrust enforcement to combat price-fixing without explicit agreements, reflecting concerns over corporate collusion in modern markets.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Scanlon, Mary Gay [D-PA-5]
Cosponsors (2)
Rep. Nadler, Jerrold [D-NY-12], Rep. Balint, Becca [D-VT-At Large]
Recent Actions
- 2026-04-30: Referred to the House Committee on the Judiciary.
- 2026-04-30: Introduced in House
- 2026-04-30: Introduced in House
Bill Versions
- Competitive Prices Act. — issued 2026-04-30 — PDF (5 pages)