Summary#
This bill, the Price Gouging Prevention Act of 2025, makes it illegal to sell or offer for sale a good or service at a "grossly excessive price." It defines key terms such as "exceptional market shock" (for example natural disasters, public health emergencies, or a presidential disaster declaration) and "critical trading partner." The bill creates rules about when a price is presumed excessive during an exceptional market shock, explains what counts as "unfair leverage," and sets out defenses for smaller sellers and for price increases that come from costs outside a seller's control. The Federal Trade Commission (FTC) would enforce the law, can sue in federal court, and may obtain injunctions, civil penalties, restitution, or other relief. The bill also lets State attorneys general bring civil actions and coordinate with the FTC. The Securities and Exchange Commission (SEC) must require public companies to add specific disclosure in 10-Q and 10-K filings after a quarter with an exceptional market shock, including changes in sales volume, average price, gross margins, cost changes, and a narrative on pricing decisions. The bill directs the FTC to issue rules and guidance within set timeframes and provides an appropriation to the FTC.
What it means for you#
- If you are a business: Selling goods or services at a "grossly excessive price" would be unlawful. Large firms may face a tougher standard because the bill defines "unfair leverage" and higher penalties for firms with that characteristic. Small sellers (whose ultimate parent earned under $100,000,000 in the prior 12 months) can raise an affirmative defense if they show price increases were due to costs outside their control. The FTC will make rules to define key phrases and may bring enforcement actions.
- If you are a consumer: The bill creates a federal rule against clearly excessive price increases during disruptions and allows enforcement by the FTC and by State attorneys general.
- If you are an investor or work at a public company: Covered issuers must include additional, tabular and narrative disclosures in SEC filings for the quarter after an exceptional market shock detailing price, volume, margins, costs, and pricing strategy.
- If you are a State attorney general: You may bring civil actions under this statute, but you must notify the FTC before filing in most cases, and the FTC can intervene in state cases.
Expenses#
- The bill appropriates $1,000,000,000 to the Federal Trade Commission for fiscal year 2025, to remain available until September 30, 2033, for carrying out the Commission's work.
- Civil penalties set by the bill: for violators without "unfair leverage," the penalty is the lesser of $25,000 or 5 percent of the ultimate parent entity's prior 12-month revenues; for violators with "unfair leverage," the penalty is 5 percent of the ultimate parent entity's prior 12-month revenues.
- No publicly available information on other projected costs or budgetary effects beyond the appropriation and the penalty amounts in the bill text.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.