Sponsors (17)
Introduced July 17, 2025 by Janice D. Schakowsky · Last progress July 17, 2025
The bill strengthens consumer protections, transparency, and enforcement capacity during exceptional market shocks—especially helping low‑income consumers and deterring dominant-firm abuse—at the cost of increased compliance and disclosure burdens, legal uncertainty, potential supply chilling effects, and added federal spending.
Low- and middle-income consumers and small businesses will be better protected from grossly excessive pricing during declared exceptional market shocks because the bill prohibits such pricing and strengthens FTC enforcement capacity (with clearer definitions and dedicated funding).
Investors, analysts, and consumers will get clearer, product-level transparency (volumes, prices, margins, cost explanations) because the SEC must require detailed disclosures for quarters with exceptional market shocks, improving market oversight and accountability.
Small sellers (ultimate parent < $100M) will have an affirmative defense if they show price increases reflected cost increases, reducing enforcement risk for many smaller businesses.
Businesses (large and small) will face higher compliance and reporting costs from FTC guidance, new SEC disclosure requirements, and potential enforcement actions, costs that may be passed on to consumers or shareholders.
Broad or ambiguous terms and substantial FTC/SEC discretion (e.g., 'grossly excessive price', 'exceptional market shock', 'critical trading partner') create legal uncertainty and increase litigation and compliance risk for firms.
The statutory presumption of violation during shocks and the high evidentiary burden to rebut (clear-and-convincing) could chill legitimate temporary price increases and risk supply disruptions or shortages in emergencies.
Based on analysis of 8 sections of legislative text.
Bans "grossly excessive" prices, sets tests for market power, requires issuer disclosures after major shocks, and provides $1B to the FTC for enforcement.
Makes it illegal to sell goods or services at a “grossly excessive” price and gives the Federal Trade Commission new tools and funding to enforce that rule. It creates definitions and tests for when a seller has “unfair leverage,” establishes exceptions and evidentiary standards for smaller sellers, requires public companies to disclose detailed pricing, cost, and margin information after major market shocks, and provides $1 billion to the FTC for enforcement through FY2033.