S. 1741: Truth in Tariffs Act

This bill, known as the Truth in Tariffs Act, aims to increase transparency regarding the impact of certain tariffs on the prices of goods sold to consumers in the United States. Here are the key components of the bill:

Tariff Impact Transparency

The bill requires that starting 30 days after it becomes law, any seller of goods to consumers in the U.S. must clearly indicate the price portion that is due to a covered tariff. This will be labeled as a "tariff surcharge" on the price tag or receipt. The intention is to inform consumers about how tariffs contribute to the total cost of goods.

Exemptions

Small businesses are exempt from this requirement. The definition of a small business follows the guidelines set forth in the Small Business Act.

Enforcement Mechanisms

The bill establishes enforcement protocols under the Federal Trade Commission (FTC). Violating this requirement is considered an unfair or deceptive act, which can lead to penalties or other consequences. The FTC retains its existing authority to regulate and enforce this bill, meaning it can create further regulations as necessary to ensure compliance.

Definitions Within the Bill

• Commission: Refers to the Federal Trade Commission, the body responsible for enforcement.
• Covered Tariff: Defined as any tariff, including those imposed by the President for emergencies, that takes effect on or after January 20, 2025.

General Implications

The main goal of this legislation is to enhance consumer awareness regarding the costs associated with tariffs. By requiring businesses to disclose this information, the bill seeks to foster more informed purchasing decisions among consumers.

Relevant Companies

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