Price Gouging Prevention Act of 2025
The Price Gouging Prevention Act of 2025 would make selling or offering to sell a good or service at a grossly excessive price unlawful across all levels of a supply chain. It gives the Federal Trade Commission broad enforcement tools, including the ability to seek permanent injunctions, civil penalties, and other equitable relief, and it authorizes state attorneys general to bring federal-venue actions as well. The bill also imposes new disclosure requirements for large issuers after exceptional market shocks through SEC filings, and it provides a substantial funding increase to the FTC to carry out these duties. Key features include a defensible threshold for small entities, presumptions during market shocks, and a framework for defining what constitutes a “grossly excessive price.” The overall aim is to curb price spikes that harm consumers during emergencies or other major disruptions, while creating guardrails and transparency around pricing behavior.
Key Points
- 1Prohibition and scope: It is unlawful to sell or offer for sale any good or service at a grossly excessive price, regardless of where the actor sits in the distribution network. The definition of “grossly excessive price” would be supplied by FTC rulemaking.
- 2Defenses and thresholds: There is an affirmative defense for certain small-to-mid-size entities (ultimate parent entity with less than $100,000,000 in U.S. gross revenue in the prior 12 months) if the price increase is due to costs outside their control and incurred in procuring, distributing, or providing the good or service. Starting in 2026, that revenue threshold is adjusted annually for inflation via the Consumer Price Index.
- 3Presumptions during exceptional market shocks: During an exceptional market shock, a seller may be presumed to be in violation if they have unfair leverage or are using shock-related conditions as a pretext to raise prices, and their price is excessive relative to either the prior 120 days or to competing sellers in the market during the shock.
- 4Enforcement and penalties: The FTC may enforce this act similarly to other unfair or deceptive practices and can seek injunctive relief, civil penalties, damages, restitution, and other equitable relief. Civil penalties would depend on leverage: up to the lesser of $25,000 or 5% of the ultimate parent’s revenues if there is no unfair leverage; or 5% of revenues if unfair leverage exists. The act also empowers the FTC to issue regulations and guidance, including how to determine market shocks and what constitutes a grossly excessive price.
- 5SEC disclosures and funding: Covered issuers (large companies with a quarter under an exceptional market shock) would have to disclose, in Form 10-Q or 10-K after the shock, detailed comparative pricing and cost information (volume, prices, margins, cost changes, revenue shifts) and provide a narrative on pricing strategy and future pricing plans. The SEC would issue final regulations to implement this. The bill would provide $1 billion in dedicated FTC funding for 2025, available through 2033, to support enforcement and related activities.