Sponsors (10)
The bill increases federal tools, funding, and transparency to prevent exploitative pricing and improve oversight during market shocks, but does so with broad agency discretion, significant compliance and penalty risks, and disclosure burdens that could raise costs, chill supply responses, and create legal uncertainty for businesses.
Millions of consumers (including middle‑class and low‑income households) gain protection from 'grossly excessive' price gouging for essential goods and services during shocks, reducing exploitative price spikes.
Federal enforcement capacity is strengthened: the FTC gets clearer authority to act in imminent market disruptions, explicit enforcement tools (injunctions, civil penalties, restitution) are authorized, and the Commission receives $1.0 billion to support investigations and operations.
Investors, consumers, and policymakers gain better transparency about how price and volume changes affected company revenues and margins during market shocks through new SEC disclosure rules and a 180‑day rulemaking deadline.
Large civil penalties (including up to 5% of U.S. parent global revenue) and new enforcement exposure could impose substantial costs on firms, which may be passed to consumers through higher prices or reduced output.
The FTC gains broad discretion through vague/undefined categories and flexible standards (e.g., 'grossly excessive', 'unfair leverage'), creating legal and regulatory uncertainty for businesses about what pricing or conduct will trigger enforcement.
During 'exceptional market shocks' a presumption of violation and shifted evidentiary burdens could chill suppliers' responses (conservative inventories, reduced supply entry) and worsen shortages or delay market recovery.
Based on analysis of 8 sections of legislative text.
Bans "grossly excessive" pricing, establishes rules and defenses (especially during market shocks), requires post-shock corporate pricing disclosures, and funds FTC enforcement with $1B.
Official title: Make price gouging unlawful, to expand the ability of the Federal Trade Commission to seek permanent injunctions and equitable relief, and for other purposes.
Introduced July 17, 2025 by Elizabeth Warren · Last progress July 17, 2025
Makes it illegal to sell goods or services at a “grossly excessive price,” creates tests, defenses, and presumptions for enforcement (including special rules during declared or agency-defined “exceptional market shocks”), and requires public companies to disclose detailed price, volume, margin, and pricing-strategy information after such shocks. It also defines “unfair leverage” for firms that can harm competitors or customers and funds the Federal Trade Commission with a $1 billion appropriation for FY2025–2033 to support enforcement work.