Price Gouging Prevention Act of 2025

This bill bans price gouging. It makes it illegal to sell any good or service at a “grossly excessive” price. During major market shocks, it’s presumed a violation if a seller with unfair leverage, or one using the crisis as a pretext, charges far more than their recent average price or more than competitors during the shock . The Federal Trade Commission (FTC) can go to court to stop violations, get refunds for people, and seek civil penalties and other relief.

Penalties can be up to the lesser of $25,000 or 5% of a company’s ultimate parent’s yearly revenue; for companies with unfair leverage, penalties can be up to 5% of the parent company’s revenue. “Unfair leverage” includes very large companies (at least $1 billion in recent U.S. revenue), those that control key inputs or platforms, or those with a dominant market position. Smaller businesses can defend themselves if they can prove their price increase came from higher costs they could not control, and this generally applies when their parent company made under $100 million; those dollar thresholds rise each year starting in 2026. The FTC must write rules within 6 months to spell out what counts as a market and what “grossly excessive” means, and may consider a benchmark like 120% of the average price in the prior 6 months. State attorneys general can also enforce the rules and work alongside the FTC; state laws remain in effect . The bill also gives the FTC $1 billion in FY2025, available through September 30, 2033, to carry out this work.

Key points

• Who is affected: Sellers of goods and services of any size; consumers; the FTC and state attorneys general .
• What changes: Price gouging is unlawful; big firms with unfair leverage face stronger presumptions and higher penalties; the FTC can sue for injunctions, refunds, and penalties; states can enforce too; the FTC will define key terms in rules .
• When: FTC rules due within 180 days of enactment; inflation adjustments to key dollar thresholds begin January 1, 2026; funding runs through September 30, 2033 .