Summary#
This bill makes it unlawful for a person to sell or offer a good or service at a "grossly excessive price." It defines key terms such as "exceptional market shock" (for example, a natural disaster or declared emergency) and "unfair leverage" (including large firms, dominant market positions, or critical trading partners). The bill creates a civil enforcement framework led by the Federal Trade Commission (FTC), gives State attorneys general related enforcement powers, and requires public companies to add specific pricing disclosures to SEC filings after a covered quarter that includes an exceptional market shock. The FTC must issue rules and guidance (including a definition of "grossly excessive price") and may bring civil actions, seek injunctions, restitution, and civil penalties. The bill also provides a dedicated appropriation of $1,000,000,000 to the FTC for FY2025, available through 2033.
What it means for you#
- If you are a business: You may not sell or offer goods or services at grossly excessive prices. Small businesses (whose ultimate parent earned less than $100,000,000 in the prior 12 months) can assert an affirmative defense if price increases are directly due to costs not within their control. Large firms (including those meeting specified revenue or market-share thresholds) may face presumptions of violation during exceptional market shocks unless they rebut those presumptions.
- If you are a public company: After a quarter that includes an exceptional market shock, you must include detailed tabular and narrative disclosures in the next Form 10-Q or 10-K about changes in sales volume, average prices, gross margins, cost changes, revenue attribution, and pricing strategy.
- If you are a consumer or resident: State attorneys general and the FTC can sue to stop excessive pricing, seek refunds or restitution, and enforce penalties.
Expenses#
- The bill appropriates $1,000,000,000 to the FTC for fiscal year 2025, available until September 30, 2033.
- Civil penalties in the bill: for a violator without "unfair leverage," the penalty is the lesser of $25,000 or 5 percent of the revenues of the violator's ultimate parent entity in the prior 12 months; for a violator with "unfair leverage," the penalty is 5 percent of the revenues of the ultimate parent entity in the prior 12 months.
- The FTC must annually adjust certain revenue thresholds (the $100,000,000 and $1,000,000,000 thresholds) for inflation using the Consumer Price Index.
Proponents' View#
Supporters (the senators listed as sponsors) introduced the bill to make price gouging unlawful, expand the FTC's ability to seek permanent injunctions and equitable relief, and increase company transparency about pricing during and after exceptional market shocks.
Opponents' View#
No publicly available information.