Summary

Makes it illegal to sell or offer a good or service at a "grossly excessive price," creates a limited defense for smaller sellers, and gives the Federal Trade Commission and State attorneys general authority to enforce the rule with civil penalties and rulemaking. It defines "exceptional market shock" (including declared disasters) and provides special presumptions and rebuttals that apply during such shocks. Public companies that experience an exceptional market shock in a quarter must add detailed pricing and cost disclosures to their next SEC filings once the SEC issues rules. The Act also provides a one-time appropriation of $1,000,000,000 from the Treasury for a named federal Commission for FY2025, available through Sept 30, 2033, to support implementation and enforcement.

Key Points

• Selling or offering any good or service at a "grossly excessive price" is made unlawful.
• Small sellers (ultimate parent revenue < $100M in prior 12 months) can assert a cost-based defense for price increases outside their control.
• The FTC (referred to as the Commission) and State attorneys general are empowered to enforce the price rule with civil penalties and rulemaking authority.
• Special presumptions and rebuttals apply during "exceptional market shocks," which include declared federal disasters or atypical market disruptions.
• Public companies that experience an exceptional market shock must add detailed pricing and cost disclosures to their next SEC 10-Q or 10-K after the SEC issues implementing rules.
• The SEC must issue final disclosure rules within 180 days of enactment; disclosure obligations become effective when those rules are issued or amended.
• Congress appropriates $1 billion (FY2025) to the named federal Commission to support implementation and enforcement, available through Sept 30, 2033.
• The Act increases transparency about pricing decisions during market shocks but creates legal uncertainty about how "grossly excessive" will be interpreted and proven.
• Compliance and reporting burdens will fall primarily on businesses and covered public companies; enforcement activity and agency capacity are likely to expand with new funding.

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