H.R. 4528: Price Gouging Prevention Act of 2025

This bill, known as the Price Gouging Prevention Act of 2025, aims to prohibit and prevent price gouging in the sale of goods and services. Here’s a breakdown of its main points:

1. Definitions

The bill defines several key terms:

• Commission: Refers to the Federal Trade Commission (FTC).
• Critical trading partner: A person or entity that can significantly limit access to essential inputs or services, impacting competition.
• Exceptional market shock: Refers to abrupt market changes due to disasters, emergencies, or similar events.
• Good or service: Any item or service sold in commerce.

2. Price Gouging Prevention

Under this legislation:

• It is illegal to sell goods or services at excessively high prices, defined as "grossly excessive prices," regardless of where a seller is in the supply chain.
• Exceptions exist for businesses that earn less than $100 million in gross revenue over the previous year and can prove that price increases are due to uncontrollable cost increases.
• The FTC will evaluate price increases during "exceptional market shocks" to identify presumptive violations. This includes situations where sellers exploit emergencies to raise prices.
• A rebuttal is allowed where sellers can demonstrate costs that led to price increases were beyond their control.

3. Enforcement Mechanisms

The bill expands the enforcement authority of the FTC:

• Violations will be treated similarly to unfair or deceptive acts under the Federal Trade Commission Act.
• The FTC can take legal actions against violators in any U.S. district court, seeking injunctions and damages for affected consumers.
• State attorneys general can also enforce this law, bringing actions in federal or state courts against violators.

4. Transparency in Securities Filings

Companies that fall under the definition of "covered issuers" (those that report and have experienced an exceptional market shock) must:

• Include disclosures in their quarterly and annual reports about pricing strategies, changes in sales volume, average prices, gross margins, and reasons for price changes.
• Provide a narrative explaining any increases in gross margins, including factors influencing such changes and pricing strategy decisions.

5. Funding for Implementation

The bill allocates $1 billion for the FTC to implement its provisions, aimed at preventing price gouging, which will be available until September 30, 2033.

Relevant Companies