HR 4528119th CongressIn Committee

Price Gouging Prevention Act of 2025

Introduced: Jul 17, 2025

Sponsor: Rep. Schakowsky, Janice D. [D-IL-9] (D-Illinois)

Economy & Taxes

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Price Gouging Prevention Act of 2025 would make certain price increases unlawful and expand the Federal Trade Commission’s (FTC) enforcement tools to combat price gouging. It prohibits selling or offering a good or service at a “grossly excessive price” during any time, with a particular focus on periods of exceptional market shocks (e.g., natural disasters, major emergencies, or other sudden disruptions). The bill also creates a framework for defenses, presumptions of violation during shocks, and enhanced enforcement powers for the FTC, State Attorneys General, and securities regulators. It would require new public disclosures from certain issuers after shocks and funnels substantial new funding to the FTC to carry out these duties. The act was introduced in the 119th Congress (July 17, 2025) and referred to the House committees on Energy and Commerce and Financial Services. It includes detailed definitions, an enforcement toolkit (injunctions, civil penalties, damages, and civil actions), a State-level enforcement pathway, and a set of SEC disclosure obligations tied to market shocks. It also provides a funding mechanism for the FTC to implement and enforce the measure and to develop regulatory guidelines.

Key Points

1Prohibition of price gouging and scope of the ban
2- Makes it unlawful to sell or offer for sale a good or service at a “grossly excessive price,” regardless of where a party sits in the supply chain.
3- Applies during normal times and, with presumptions, during exceptional market shocks.
4Defenses and cost-based considerations
5- An affirmative defense exists if the ultimate parent entity earned less than $100,000,000 in U.S. gross revenue in the prior 12 months and the price increase is shown to be due to costs outside the seller’s control incurred in procurement/distribution.
6- The $100,000,000 threshold is adjusted annually for inflation starting January 1, 2026.
7Presumptions of violation during exceptional market shocks
8- During an exceptional market shock, a seller may be presumed to be in violation if they have unfair leverage or if price increases are used as a pretext to gouge, with prices exceeding either pre-shock market norms or competing sellers’ prices during the shock.
9- A rebuttal is possible if the seller proves the price increase was due to uncontrollable costs.
10Unfair leverage and enforcement framework
11- “Unfair leverage” includes factors such as very large revenue, discrimination against otherwise equal trading partners, being a critical trading partner, dominant market position, or engaging in deceptive or abusive acts.
12- A presumption of dominance exists for purposes of leverage if evidence shows lack of meaningful competitive pressures or certain market share thresholds (e.g., 40% seller share or 30% buyer share).
13FTC and state enforcement; penalties; and rulemaking
14- The FTC can enforce these provisions as unfair or deceptive acts or practices, with authority to seek injunctions, damages, restitution, and other equitable relief.
15- Civil penalties are capped, with higher penalties (5% of ultimate parent revenues) if unfair leverage is present; lower penalties otherwise (up to $25,000 or 5% of revenue, whichever is greater/lesser per the bill’s formula).
16- State Attorneys General may bring parallel actions with notice and intervention rights for the FTC; the act preserves state authority and does not preempt state laws.
17- The FTC would issue regulations within 180 days, including definitions of “grossly excessive price” and guidelines on exceptional market shocks and leverage.
18SEC disclosures for affected issuers and timing
19- Covered issuers (those with a covered quarter following an exceptional market shock) must disclose quarterly changes in volume, prices, gross margins, cost changes, and a narrative on pricing strategy and planned adjustments in the quarter after the shock.
20- The SEC must issue final regulations to implement these disclosures, and the disclosure requirement takes effect when those regulations become effective.
21Funding
22- The bill provides a substantial infusion of funding for the FTC: $1,000,000,000 for fiscal year 2025, available through September 30, 2033, to support enforcement and related activities.

Impact Areas

Primary group/area affected- Consumers and households, who would benefit from stronger protections against price gouging during emergencies or shocks.- Businesses across any sector that could be accused of gouging, including retailers, manufacturers, and service providers, especially those with large market power or dominant market positions.Secondary group/area affected- State Attorneys General and state regulators, who gain new authority to pursue violations and coordinate with the FTC.- Publicly traded issuers and their investors, due to new SEC disclosure requirements after shocks.- Legal and compliance professionals, who will face new regulatory definitions, guidelines, and enforcement scenarios.Additional impacts- Compliance and administrative costs for businesses, especially those in markets prone to shocks and those with complex pricing strategies.- Potential shifts in pricing behavior during or after shocks due to the risk of penalties and enhanced scrutiny.- Increased regulatory clarity and transparency around price movements, margins, and pricing rationales for periods following shocks.- Resource implications for the FTC and SEC, given the large funding and new rulemaking responsibilities.

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