119-hr4528

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4528 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4528

 To make price gouging unlawful, to expand the ability of the Federal 
 Trade Commission to seek permanent injunctions and equitable relief, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 17, 2025

 Ms. Schakowsky (for herself, Mr. Deluzio, Ms. Norton, Mr. Nadler, Ms. 
Scanlon, Ms. Tlaib, Ms. Jayapal, Mr. Tonko, Mr. Khanna, Mr. Johnson of 
 Georgia, Ms. DeLauro, Ms. Craig, and Ms. Goodlander) introduced the 
 following bill; which was 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

_______________________________________________________________________

 A BILL

 To make price gouging unlawful, to expand the ability of the Federal 
 Trade Commission to seek permanent injunctions and equitable relief, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Price Gouging 
Prevention Act of 2025''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. Prevention of price gouging.

Sec. 4. Disclosures in SEC filings.

Sec. 5. Funding.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Commission.--The term ``Commission'' means the Federal 
 Trade Commission.

    (2) Critical trading partner.--The term ``critical trading 
 partner'' means a person that has the ability to restrict, 
 impede, or foreclose access to the inputs, customers, partners, 
 goods, services, technology, platform, facilities, or tools of 
 such person in a way that harms competition or limits the 
 ability of the customers or suppliers of such person to carry 
 out business effectively.

    (3) Exceptional market shock.--The term ``exceptional 
 market shock'' means--
        (A) any change or imminently threatened (as 
 determined under guidance issued by the Commission) 
 change in the market for a good or service resulting 
 from a natural disaster, failure or shortage of 
 electric power or other source of energy, concerted 
 labor action, lockout, civil disorder, war, military 
 action, national or local emergency, abrupt or 
 significant shift in trade policy, public health 
 emergency, or any other cause of an atypical disruption 
 in such market; or
        (B) any period of time during which the President 
 has declared a major disaster or emergency under 
 

section 401 or 502, respectively, of the Robert T. 
 Stafford Disaster Relief and Emergency Assistance Act 
 (42 U.S.C. 5170, 5191).

    (4) Good or service.--The term ``good or service'' means 
 any good or service offered in commerce.

    (5) State.--The term ``State'' means each of the several 
 States, the District of Columbia, each commonwealth, territory, 
 or possession of the United States, and each federally 
 recognized Indian Tribe.

    (6) Ultimate parent entity.--The term ``ultimate parent 
 entity'' has the meaning given such term in 

section 801.1 of 
 title 16, Code of Federal Regulations (or any successor 
 regulation).

SEC. 3. PREVENTION OF PRICE GOUGING.

    (a) In General.--It shall be unlawful for a person to sell or offer 
for sale a good or service at a grossly excessive price, regardless of 
the person's position in a supply chain or distribution network.

    (b) Affirmative Defense.--

    (1) In general.--Subsection

    (a) shall not apply to the 
 sale, or offering for sale, of a good or service by a person 
 if--
        (A) the person's ultimate parent entity earned less 
 than $100,000,000 in gross revenue from goods or 
 services provided in the United States during the 12-
 month period preceding the sale or offer that allegedly 
 violates subsection

    (a) ; and
        (B) the person demonstrates by a preponderance of 
 the evidence that the increase in the price of the good 
 or service involved is directly attributable to 
 additional costs that are--
            (i) not within the control of the person; 
 and
            (ii) incurred by the person in procuring, 
 acquiring, distributing, or providing the good 
 or service.

    (2) Inflation adjustment.--Beginning on January 1, 2026, 
 the Commission shall annually adjust the amount specified in 
 paragraph

    (1)
        (A) by the percentage change in the consumer price 
 index for all urban consumers published by the Bureau of Labor 
 Statistics for the 12-month period ending on December 31 of the 
 previous year.
            (c) Presumptive Violations.--A person shall be presumed to be in 
violation of subsection

    (a) if, during an exceptional market shock, it 
is shown by a preponderance of the evidence that the person--

    (1)
        (A) has unfair leverage; or
        (B) is using the effects or circumstances related to an 
 exceptional market shock as a pretext to increase prices; and

    (2) regardless of the person's position in a supply chain 
 or distribution network, sells or offers for sale a good or 
 service at an excessive price compared to--
        (A) the average price at which the good or service 
 was sold or offered for sale by the person in the 
 market during the 120-day period preceding such 
 exceptional market shock; or
        (B) the price at which the good or service was sold 
 or offered for sale by competing sellers in the market 
 during the exceptional market shock.
            (d) Rebuttal.--A person may rebut a presumption under subsection
            (c) if the person demonstrates by clear and convincing evidence that 
the increase in the price of the good or service involved is directly 
attributable to additional costs that are--

    (1) not within the control of the person; and

    (2) incurred by the person in procuring, acquiring, 
 distributing, or providing the good or service.

    (e) Unfair Leverage.--

    (1) In general.--
        (A) Characteristics of unfair leverage.--For 
 purposes of subsection
            (c) , a person has unfair 
 leverage if the person--
            (i) earned at least $1,000,000,000 in gross 
 revenue from goods or services provided in the 
 United States during the 12-month period 
 preceding the sale or offer that allegedly 
 violates subsection

    (a) ;
            (ii) discriminates between otherwise equal 
 trading partners in the same market by applying 
 differential prices or conditions;
            (iii) is a critical trading partner;
            (iv) engages in unfair, deceptive, or 
 abusive acts or practices;
            (v) has a dominant position in--
            (I) the conduct of any business, 
 trade, or commerce;
            (II) any labor market; or
            (III) the furnishing of any 
 service; or
            (vi) has a characteristic described in a 
 rule promulgated by the Commission that further 
 defines unfair leverage.
        (B) Presumption of a dominant position.--For 
 purposes of subparagraph
        (A)
            (v) , a person shall be 
 presumed to have a dominant position if--
            (i) evidence shows that the person is not 
 constrained by meaningful competitive 
 pressures; or
            (ii) the person--
            (I) has a share of 40 percent or 
 greater of a relevant market as a 
 seller; or
            (II) has a share of 30 percent or 
 greater of a relevant market as a 
 buyer.

    (2) Inflation adjustment.--Beginning on January 1, 2026, 
 the Commission shall annually adjust the amount specified in 
 paragraph

    (1)
        (A)
            (i) by the percentage change in the consumer 
 price index for all urban consumers published by the Bureau of 
 Labor Statistics for the 12-month period ending on December 31 
 of the previous year.

    (f) Enforcement by the Commission.--

    (1) Unfair or deceptive acts or practices.--A violation of 
 this section or a regulation promulgated under this section 
 shall be treated as a violation of a rule defining an unfair or 
 deceptive act or practice prescribed under 

section 18

    (a)

    (1)
        (B) of the Federal Trade Commission Act (15 U.S.C. 57a

    (a)

    (1)
        (B) ).

    (2) Powers of the commission.--
        (A) In general.--Except as provided by 
 subparagraphs
            (D) and
        (E) , the Commission shall enforce 
 this section in the same manner, by the same means, and 
 with the same jurisdiction, powers, and duties as 
 though all applicable terms and provisions of the 
 Federal Trade Commission Act (15 U.S.C. 41 et seq.) 
 were incorporated into and made a part of this section.
        (B) Privileges and immunities.--Any person who 
 violates this section or a regulation promulgated under 
 this section shall be subject to the penalties and 
 entitled to the privileges and immunities provided in 
 the Federal Trade Commission Act (15 U.S.C. 41 et 
 seq.).
            (C) Authority preserved.--Nothing in this section 
 shall be construed to limit the authority of the 
 Commission under any other provision of law.
            (D) Independent litigation authority.--If the 
 Commission has reason to believe that a person has 
 violated this section, the Commission may bring a civil 
 action in any appropriate United States district court 
 to--
            (i) enjoin any further such violation by 
 such person;
            (ii) enforce compliance with this section;
            (iii) obtain a permanent, temporary, or 
 preliminary injunction;
            (iv) obtain civil penalties;
            (v) obtain damages, restitution, or other 
 compensation on behalf of aggrieved consumers; 
 or
            (vi) obtain any other appropriate equitable 
 relief.
        (E) Civil penalties.--In addition to any other 
 penalties as may be prescribed by law, each violation 
 of this section shall carry a civil penalty not to 
 exceed--
            (i) if the person who committed the 
 violation does not have unfair leverage (as 
 described in subsection

    (e) ), the lesser of--
            (I) $25,000; or
            (II) 5 percent of the revenues 
 earned by the person's ultimate parent 
 entity during the preceding 12-month 
 period; or
            (ii) if the person who committed the 
 violation has unfair leverage, 5 percent of the 
 revenues earned by the person's ultimate parent 
 entity during the preceding 12-month period.
        (F) Rulemaking.--
            (i) In general.--The Commission may 
 promulgate in accordance with 

section 553 of 
 title 5, United States Code, such rules as may 
 be necessary to carry out this section, 
 including guidelines regarding what 
 circumstances constitute an exceptional market 
 shock or guidelines that provide for additional 
 characteristics that demonstrate that a person 
 has unfair leverage.
            (ii) Required guidance.--Not later than 180 
 days after the date of enactment of this Act, 
 the Commission shall promulgate regulations 
 regarding violations of this section, which 
 shall include guidelines on, for the purposes 
 of this Act, what constitutes a market, a 
 grossly excessive price for a good or service, 
 and an excessive price for a good or service.
            (iii) Definition of grossly excessive 
 price.--
            (I) In general.--For purposes of 
 subsection

    (a) and the guidelines on 
 what constitutes a grossly excessive 
 price described in clause
            (ii) , the 
 Commission shall define the term 
 ``grossly excessive price'' using any 
 metric it deems appropriate.
            (II) Definition considerations.--In 
 formulating the definition in subclause
            (I) , the Commission shall consider 
 whether to provide that such term shall 
 include a price for a good or service 
 that is an amount equal to or greater 
 than 120 percent (or a lesser 
 percentage, as determined appropriate 
 by the Commission) of the average price 
 for such good or service in the market 
 during the 6-month period preceding the 
 sale or offer that allegedly violates 
 subsection

    (a) .

    (g) Enforcement by State Attorneys General.--

    (1) In general.--If the attorney general of a State has 
 reason to believe that any person has violated or is violating 
 this section, the attorney general, in addition to any 
 authority it may have to bring an action in State court under 
 the laws of such State, may bring a civil action in any 
 appropriate United States district court or in any other court 
 of competent jurisdiction, including a State court, to--
        (A) enjoin any further such violation by such 
 person;
        (B) enforce compliance with this section;
            (C) obtain a permanent, temporary, or preliminary 
 injunction;
            (D) obtain civil penalties;
        (E) obtain damages, restitution, or other 
 compensation on behalf of residents of the State; or
        (F) obtain any other appropriate equitable relief.

    (2) Rights of the commission.--
        (A) Notice to the commission.--
            (i) In general.--Except as provided in 
 clause
            (ii) , before initiating a civil action 
 under paragraph

    (1) , the attorney general of a 
 State shall provide to the Commission a written 
 notice of such action and a copy of the 
 complaint for such action.
            (ii) Exception.--If the attorney general 
 determines that it is not feasible to provide 
 the notice described in clause
            (i) before 
 initiating a civil action under this 
 subsection, the attorney general shall provide 
 written notice of the action and a copy of the 
 complaint to the Commission immediately upon 
 initiating the civil action.
            (iii) Jurisdiction not affected.--An 
 attorney general failing to provide notice 
 under clause
            (i) shall not prevent the attorney 
 general or the Commission from having 
 jurisdiction over a civil action brought under 
 paragraph

    (1) or imperil such civil action in 
 any way.
        (B) Intervention.--The Commission may--
            (i) intervene in any civil action brought 
 by the attorney general, official, or agency of 
 a State under this subsection; and
            (ii) upon intervening--
            (I) be heard on all matters arising 
 in the civil action; and
            (II) file petitions for appeal of a 
 decision in the civil action.

    (3) Investigatory powers.--Nothing in this subsection may 
 be construed to prevent the attorney general of a State from 
 exercising the powers conferred on the attorney general by the 
 laws of the State to conduct investigations, to administer 
 oaths or affirmations, or to compel the attendance of witnesses 
 or the production of documentary or other evidence.

    (4) Limitation on state action while federal action is 
 pending.--If the Commission has instituted a civil action for a 
 violation of this section, no State attorney general may, 
 without the approval of the Commission, bring an action under 
 this subsection during the pendency of that action against any 
 defendant named in the complaint of the Commission for any 
 violation of this section alleged in the complaint.

    (5) Relationship with state-law claims.--If the attorney 
 general of a State has authority to bring an action under State 
 law directed at acts or practices that also violate this 
 section, the attorney general may assert a claim under State 
 law and a claim under this section in the same civil action.

    (6) Venue; service of process.--
        (A) Venue.--Any action brought under paragraph

    (1) may be brought in--
            (i) the district court of the United States 
 that meets applicable requirements relating to 
 venue under 

section 1391 of title 28, United 
 States Code; or
            (ii) another court of competent 
 jurisdiction.
        (B) Service of process.--In an action brought under 
 paragraph

    (1) , process may be served in any district in 
 which--
            (i) the defendant is an inhabitant, may be 
 found, or transacts business; or
            (ii) venue is proper under 

section 1391 of 
 title 28, United States Code.

    (7) Actions by other state officials.--
        (A) In general.--In addition to civil actions 
 brought by an attorney general under paragraph

    (1) , any 
 other officer of a State who is authorized by the State 
 to do so may bring a civil action under paragraph

    (1) , 
 subject to the same requirements and limitations that 
 apply under this subsection to civil actions brought by 
 attorneys general.
        (B) Savings provision.--Nothing in this subsection 
 may be construed to prohibit an authorized official of 
 a State from initiating or continuing any proceeding in 
 a court of the State for a violation of any civil or 
 criminal law of the State.

    (8) Effect on state laws.--Nothing in this section shall 
 preempt or otherwise affect any State or local law.

SEC. 4. DISCLOSURES IN SEC FILINGS.

    (a) 

=== Definitions. ===
-In this section:

    (1) Covered issuer.--The term ``covered issuer'' means an 
 issuer that--
        (A) has a covered quarter; and
        (B) in the quarter following the covered quarter 
 described in subparagraph
        (A) , is required to submit 
 Form 10-Q or Form 10-K.

    (2) Covered quarter.--The term ``covered quarter'' means a 
 quarter during which there is an exceptional market shock.

    (3) Form 10-k.--The term ``Form 10-K'' means the form 
 described in 

section 249.310 of title 17, Code of Federal 
 Regulations, or any successor regulation.

    (4) Form 10-q.--The term ``Form 10-Q'' means the form 
 described in 

section 240.15d-13 of title 17, Code of Federal 
 Regulations, or any successor regulation.

    (5) Issuer.--The term ``issuer'' has the meaning given the 
 term in 

section 3

    (a) of the Securities Exchange Act of 1934 (15 
 U.S.C. 78c

    (a) ).

    (b) Inclusion in Filing.--Each covered issuer, in each Form 10-K or 
Form 10-Q that the covered issuer is required to file in a quarter 
following a covered quarter, shall include in the filing the following 
information with respect to that covered quarter, as compared with the 
quarter preceding that covered quarter:

    (1) The percentage change in the volume of goods or 
 services sold, and the percentage change in the average sales 
 price of those goods or services, which shall be broken down by 
 material product categories, when relevant, and presented in a 
 tabular format.

    (2) The gross margins of the covered issuer, which shall be 
 broken down by material product categories, when relevant, and 
 presented in a tabular format.

    (3) Presented in tabular format, the share of the increase 
 in revenue of the covered issuer that is attributable to--
        (A) a change in the cost of goods or services sold 
 by the covered issuer; and
        (B) a change in the volume of goods or services 
 sold by the covered issuer.

    (4) The percentage change in the costs of the covered 
 issuer, which shall be broken down by category and presented in 
 tabular format.

    (5) In dollars, the change in the costs of the covered 
 issuer and the revenue of the covered issuer, which shall be 
 presented in tabular format.

    (6) A detailed narrative disclosure of the pricing strategy 
 of the covered issuer, which shall include--
        (A) an explanation for any increase in the gross 
 margins of material product categories, including all 
 material causes for such an increase, an explanation of 
 how each such material cause affected such an increase, 
 and a description of the relative importance of each 
 such material cause with respect to such an increase;
        (B) an explanation for the decisions made by the 
 covered issuer with respect to the prices of goods or 
 services sold by the covered issuer;
            (C) if the covered issuer increased prices at a 
 rate that was greater than the rate at which the costs 
 incurred by the covered issuer increased, the rationale 
 and objectives for increasing prices in such a manner; 
 and
            (D) a description of conditions under which the 
 covered issuer plans to modify pricing after the date 
 on which the covered issuer submits the filing.
            (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Securities and Exchange Commission shall 
issue final regulations, or amend existing regulations of the 
Commission, to carry out this section.
            (d) Effective Date.--This section shall take effect on the date on 
which the Securities and Exchange Commission issues final regulations 
under subsection
            (c) or completes the amendments required under that 
subsection, as applicable.

SEC. 5. FUNDING.

 In addition to amounts otherwise available, there is appropriated 
to the Commission for fiscal year 2025, out of any money in the 
Treasury not otherwise appropriated, $1,000,000,000, to remain 
available until September 30, 2033, for carrying out the work of the 
Commission.
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