Summary

Prohibits selling goods or services at a “grossly excessive” price and gives the Federal Trade Commission broad authority to define and enforce that ban, including rulemaking, civil penalties, and injunctions; State attorneys general may bring parallel enforcement actions. Requires publicly traded companies that experienced an "exceptional market shock" to disclose detailed, tabular and narrative comparisons of price, volume, cost, and margin changes in their next SEC Form 10‑Q or 10‑K filing. Provides a one‑time appropriation of $1 billion to the FTC for fiscal year 2025 to carry out related work.

Key Points

• Prohibits selling goods or services at a "grossly excessive" price and empowers the FTC to define and enforce the rule.
• Creates a strong presumption of violation during an "exceptional market shock" for sellers with "unfair leverage," rebuttable only by clear and convincing evidence.
• Imposes new, detailed SEC disclosure requirements for issuers that experienced an exceptional market shock, comparing price, volume, cost, and margins quarter‑to‑quarter.
• Provides an affirmative defense for sellers whose ultimate parent had under $100 million U.S. revenue in the prior 12 months, if price increases stem from uncontrollable cost increases.
• Sets civil penalty caps tied to ultimate parent revenues and allows State attorneys general to bring parallel civil suits (with FTC notice/intervention rules).
• Requires FTC and SEC to complete rulemaking within 180 days and directs annual CPI‑U indexation of revenue thresholds starting in 2026.
• Appropriates $1 billion to the FTC for FY2025 (available through Sept 30, 2033) to carry out enforcement and regulatory work.

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