H.R. 7166: Stop Online Ammunition Sales Act of 2026

This bill, titled the Stop Online Ammunition Sales Act of 2026, aims to regulate the sale and distribution of ammunition in the United States. Below are the main provisions and changes proposed in the bill:

Licensing of Ammunition Dealers

The bill requires all dealers selling ammunition to be licensed. This means that individuals or businesses that wish to sell ammunition must obtain a federal license. This change ensures that there is oversight and regulation of those who are allowed to sell ammunition, thereby adding a layer of accountability.

Face-to-Face Sales Requirement

It mandates that ammunition sales must be conducted in person. Under this provision, a licensed dealer is prohibited from selling ammunition to anyone who does not meet the identification verification requirements. When selling ammunition:

• The dealer must physically verify the identity of the purchaser using a valid identification document that includes a photograph.
• Only licensed importers, manufacturers, or dealers are allowed to sell or transfer ammunition, and they must do so face-to-face.

Shipping and Transportation Limits

The bill restricts the shipping or transporting of ammunition. It adds a provision that makes it illegal to ship or transport ammunition in the same manner as currently regulated for firearms. This aims to prevent the shipment of ammunition to individuals who do not have a license to sell or possess it legally.

Recordkeeping Requirements

To enhance tracking and accountability:

• Ammunition dealers will have to maintain records of all transactions related to the sale and distribution of ammunition.
• The bill requires dealers to report any sale of more than 1,000 rounds of ammunition made to an unlicensed person within a five-day period. This report must be filed with the Attorney General and law enforcement agencies on the same day the sale occurs.

Amendments to Existing Laws

The bill also proposes to amend existing laws related to firearms by including provisions specific to ammunition. This integrates the regulations concerning ammunition into the broader legal framework governing firearms, aiming for consistency in regulation.

Exceptions

There are specific exceptions noted in the bill. For instance, certain transactions between licensed dealers and manufacturers are allowed without the same identification and face-to-face sale requirements. However, most retail sales to the public will follow the proposed new regulations.

Enforcement and Compliance

The legislation allows for the enforcement of these new regulations through the existing federal and state law enforcement mechanisms. This includes penalties for noncompliance, thereby incentivizing adherence to the new rules established by the bill.

Relevant Companies

• SWBI - Smith & Wesson Brands, Inc. could see changes in sales practices, as they may need to adapt their distribution strategies to comply with the face-to-face sales requirement.
• POWW - Powaw, Inc. may face impacts from the stricter regulations on sales and distribution of ammunition, especially in online platforms that may be limited by this legislation.