H.R. 6318: No Gratuitous Overcharging for Ubiquitous Global Exports Act

This bill, titled the "No Gratuitous Overcharging for Ubiquitous Global Exports Act," aims to prevent price gouging on goods that are subject to tariffs in the United States. Here are the main points of the bill:

Definitions

• Commission: Refers to the Federal Trade Commission (FTC).
• Tariffed Good: Includes goods that are either final products or components subject to tariffs that were enacted or planned after January 20, 2025.
• Unreasonably High Price: Selling a tariffed good at a price higher than the cost increases directly caused by tariffs, and additional costs not related to executive pay or stock buybacks.

Price Gouging Prohibition

• It prohibits any person from selling tariffed goods at unreasonably high prices during a five-year period following the enactment of a tariff or planned tariff.
• The bill defines "unreasonably high price" in terms of increases above certain cost thresholds due to tariffs.

Exemptions

• Companies that earn less than $100 million in gross revenue from goods sold in the U.S. in the previous year are exempt from this prohibition.
• This threshold will be adjusted annually based on inflation as measured by the consumer price index.

Regulations and Enforcement

• The FTC is authorized to create regulations necessary to enforce the provisions of the bill.
• The agency can treat violations as unfair or deceptive practices under the Federal Trade Commission Act.
• State attorneys general can bring civil actions to address violations on behalf of state residents.

Reporting and Transparency

• The FTC will establish mechanisms for consumers to report potential violations of the bill.
• Reports from the United States International Trade Commission (ITC) and the Bureau of Labor Statistics are mandated to track price changes of goods affected by tariffs.
• The FTC will also report yearly on its enforcement activities related to this bill.

Impact on Tariffs

• The bill directly addresses the economic impact of federal and state tariffs on prices consumers pay household goods.
• It seeks to ensure that tariffs do not lead to unjustified price increases by making it illegal for sellers to raise prices beyond justifiable costs.

Exclusions from Liability

• Persons or companies can defend against presumed violations by proving that price increases are solely due to valid costs related to tariffs.

Relevant Companies

• AMZN (Amazon.com, Inc.): As a major retailer, this company may be significantly impacted by regulations that affect pricing on tariffed goods sold online.
• FB (Meta Platforms, Inc.): If Meta's advertising or e-commerce components incur tariffs affecting consumer prices, they may experience pressure under this bill.
• AAPL (Apple Inc.): Given the reliance on global supply chains, tariffs on components could affect pricing strategies for Apple’s products.
• T (AT&T Inc.): Impacts on tariffed goods could influence the pricing of technology and accessories sold via AT&T services.