H.R. 1788

119th CONGRESS 1st Session

To prohibit the use of algorithmic systems by food producers to artificially inflate the price or reduce the supply of their foods.

IN THE HOUSE OF REPRESENTATIVES · March 3, 2025 · Sponsor: Mr. Frost · Committee: Committee on the Judiciary

H.R. 1788

SEC. 1. Short title

This Act may be cited as the Fair Grocery Pricing Act.

SEC. 2. Definitions

In this Act:
- The term means the Chair of the Commission.
- The term means the Federal Trade Commission.
- The term means a tacit agreement between 2 or more food producers to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable food products. consciously parallel pricing coordination
- The term means— coordinating function
- The term means any person that operates a software or data analytics service that performs a coordinating function for any food producer, including a food producer performing a coordinating function for their own benefit. coordinator
- The term has the meaning given the term in the 321st section of the Food, Drug and Cosmetic Act (). food 21 U.S.C. 321
- The term means any individual, corporation, or entity engaged in the manufacturing, processing, or production of food products for commercial distribution. food producer
- The term has the meaning given the term in the 1st section of the Clayton Act (). person 15 U.S.C. 12
- The term means an agreement between 2 or more parties to arbitrate a dispute between the parties that is made before any dispute has arisen. pre-dispute arbitration agreement
- The term means an agreement between 2 or more parties, which may be part of a pre-dispute arbitration agreement, that— pre-dispute joint action waiver
- The term means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.

SEC. 3. Unlawful conduct

(a) In general
- (1) Contract or conspiracy in restraint of trade
  - It is unlawful for a food producer, in or affecting commerce, or any agent or subcontractor thereof, to subscribe to, contract with, or otherwise exchange anything of value or use in return for the services of a coordinator, and such action shall be deemed to be a per se violation of the Sherman Act (). 15 U.S.C. 1 et seq.
- (2) Facilitation
  - It is unlawful for a coordinator, in or affecting commerce, to facilitate an agreement among food producers to not compete with respect to food prices, supply or output, or other commercial term, including by performing a coordinating function.

SEC. 4. Enforcement

(a) Enforcement
- (1) In general
  - (A) Federal trade commission
    - The Commission shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms of the Federal Trade Commission Act () were incorporated into and made a part of this Act. 15 U.S.C. 41 et seq.
  - (B) Attorney general
    - The Attorney General shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms of the Sherman Act (), Clayton Act (), and Antitrust Civil Process Act () were incorporated into and made a part of this Act. 15 U.S.C. 1 et seq.; 15 U.S.C. 12 et seq.; 15 U.S.C. 1311 et seq.
  - (C) State attorneys general
    - Any attorney general of a State shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms of the Sherman Act () and the Clayton Act () were incorporated into and made a part of this Act. 15 U.S.C. 1 et seq.; 15 U.S.C. 12 et seq.
- (2) Unfair methods of competition
  - A violation of this Act shall also constitute an unfair method of competition under section 5 of the Federal Trade Commission Act (). 15 U.S.C. 45
- (3) Independent litigation authority
  - If the Commission has reason to believe that a person violated this Act, the Commission may commence a civil action, in its own name by any of its attorneys designated by it for such purpose, to recover a civil penalty and seek other appropriate relief in any district court of the United States.
- (4) Standards of pleading
  - In a civil action under this subsection, a complaint—
    - plausibly pleads a violation of section 1 or 3(a) of the Sherman Act (, 3(a)) if the complaint contains factual allegations, including allegations of consciously parallel pricing coordination, demonstrating that the existence of a contract, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and 15 U.S.C. 1
    - need not allege facts tending to exclude the possibility of independent action.
(b) Civil actions by injured persons
- (1) Civil action authorized
  - Any person who is aggrieved by a violation of this Act may bring a civil action in an appropriate district court of the United States, without respect to the amount in controversy, to recover an amount described in paragraph (2).
- (2) Award amount
  - (A) In general
    - The court shall award to the plaintiff threefold the damages sustained by the plaintiff and the reasonable cost of litigation, including a reasonable attorney fee.
  - (B) Interest on damages
    - Pursuant to a motion by the plaintiff promptly made, the court may award simple interest on actual damages sustained by the plaintiff for the period beginning on the date of service of the pleading of the plaintiff setting forth a claim under this Act and ending on the date of judgment, or for any shorter period therein.
- (3) Invalidity of pre-dispute arbitration agreements and pre-dispute joint action waivers
  - At the election of the plaintiff in an action authorized under paragraph (1), a pre-dispute arbitration agreement or pre-dispute joint action waiver relating to a violation of this Act shall be invalid or unenforceable.

SEC. 5. Relationship to Federal antitrust laws

Nothing in this Act, or any amendment made by this Act, shall be construed to modify, impair, or supersede the operation of any of the antitrust laws

SEC. 6. Relationship to State and local laws

Nothing in this Act may be construed to preempt any State, Tribal, city, or local law, regulation, or ordinance that supplements this Act.

SEC. 7. Severability

If any provision of this Act, or the application of such a provision to any person or circumstance, is held to be unconstitutional, the remaining provisions of this Act, and the application of such provisions to any person or circumstance shall not be affected thereby.