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H.R. 3306: Truth in Tariffs Act

The proposed bill, known as the Truth in Tariffs Act, aims to enhance transparency regarding the impact of tariffs on consumer prices in the United States. Here’s a breakdown of its key provisions:

1. Price Disclosure Requirement

The bill mandates that sellers must clearly display the portion of the price of any goods attributable to certain tariffs when selling to consumers. This disclosure must be presented in a manner that is both clear and conspicuous, making it evident to buyers how much of the price they are paying is due to what is termed a "tariff surcharge."

2. Exemptions for Small Businesses

Sales made by small businesses are exempt from this requirement. This means small business owners do not have to disclose the impacts of tariffs on their prices as stipulated by this bill.

3. Regulatory Authority

The bill grants the Federal Trade Commission (FTC) the authority to create regulations necessary to implement and enforce these provisions effectively. This regulation-making is to be done in accordance with established procedures outlined in U.S. law.

4. Enforcement Mechanism

If a seller violates this disclosure requirement, it would be considered an unfair or deceptive act or practice under the Federal Trade Commission Act. The FTC would then have the power to enforce compliance, utilizing the same means and authority as it does with other violations of trade regulations.

5. Applicability Timeline

The provisions of this bill would apply to sales that take place 30 days after the bill is enacted into law.

6. Definitions

Covered Tariff: This term refers to tariffs imposed on an emergency or discretionary basis by the President that come into effect on or after January 20, 2025.
Small Business Concern: This term is defined according to existing laws concerning small businesses.