S. 1715: Protecting Privacy in Purchases Act

This bill, titled the Protecting Privacy in Purchases Act, aims to regulate how payment card networks and related entities classify firearms retailers. Specifically, it would prohibit these entities from requiring firearms retailers to use or receive a merchant category code that distinguishes them from general merchandise or sporting goods retailers. This is important because merchant category codes can affect how transactions are monitored and categorized, which some believe may infringe on consumer privacy regarding firearm purchases.

Key Provisions of the Bill

• Definitions: The bill defines various terms, including:
  • Ammunition: Defined as per existing U.S. law.
  • Covered entity: Refers to any organization that processes credit, debit, or prepaid card transactions for merchants.
  • Firearm: Defined according to existing U.S. law, encompassing various types of firearms.
  • Firearms retailer: A person or business that legally sells firearms or ammunition.
  • Merchant category code: A multi-digit code used to classify businesses based on their type of trade or services.
  • Payment card network: An organization that facilitates the processing of card transactions.
• Prohibitions:
  • Payment card networks cannot require firearms retailers to use specific codes that distinguish them from broader categories.
  • Covered entities are also restricted from assigning such codes to firearms retailers.
• Enforcement:
  • The Attorney General is tasked with enforcing these provisions, including investigating complaints of violations.
  • A process will be established for firearms retailers or others to report alleged violations.
  • If violations are confirmed, the Attorney General can notify the offending parties and require corrective action within 30 days.
  • If the violations are not remedied, the Attorney General may take further legal action.
• Preemption: The bill would override any state or local laws concerning merchant category codes for firearms retailers.
• No Private Right of Action: This means individuals cannot separately bring legal action based on this act.
• Annual Reporting: The Attorney General must report to Congress annually regarding the number of investigations and their outcomes.

Purpose of the Bill

The main goal of this legislation is to protect the privacy of individuals making purchases related to firearms. By preventing distinct classification for firearms retailers, the bill seeks to mitigate concerns around tracking and surveillance associated with firearms transactions.

Relevant Companies

• V - Visa Inc.: As a major payment card network, Visa could be directly affected by this legislation in terms of how they classify transactions related to firearms retailers.
• MA - Mastercard Incorporated: Similar to Visa, Mastercard may also need to adjust how they assign merchant category codes to comply with the proposed regulations.
• DFS - Discover Financial Services: As another key player in the payment card industry, Discover would be impacted by the requirements this bill places on payment card networks regarding merchant classifications.