Price Gouging Prevention Act of 2025

This bill aims to stop price gouging. It makes it illegal to sell goods or services at a “grossly excessive” price, no matter where a seller sits in the supply chain. The Federal Trade Commission (FTC) must write rules within 6 months to explain what counts as a market and what counts as “grossly excessive” or “excessive” pricing; the agency may use benchmarks like prices being 120% or more of recent averages when setting its guidance . During emergencies or other major market shocks, companies are presumed to be breaking the law if they use the situation to raise prices far above their recent prices or above competitors’ prices. Companies can defend themselves by showing clear proof that any increase came directly from higher costs they couldn’t control (like higher input or shipping costs) .

Bigger players face stricter scrutiny. A company may be treated as having “unfair leverage” if it’s very large (for example, at least $1 billion in recent U.S. revenue), has a dominant market share, is a key gatekeeper for inputs or customers, or uses unfair or deceptive practices. A dominant position can be presumed at 40% market share for sellers or 30% for buyers. These dollar thresholds will be adjusted over time for inflation . The FTC can sue in court to stop violations, get refunds for consumers, and seek civil penalties. Fines can reach up to the lesser of $25,000 or 5% of the company’s parent’s yearly revenue, and up to 5% if the company has “unfair leverage.” States can also take companies to court and seek penalties and refunds, though they generally must notify the FTC and step back if the FTC is already suing. State laws aren’t wiped out by this bill. The bill also provides the FTC with new funding to enforce these rules .

| Key point | What it means | | — | — | | Who is covered | Any seller of goods or services, including large companies with major market power or gatekeeping roles | | What changes | Selling at a “grossly excessive” price is illegal; FTC will set detailed rules and can go to court for penalties and consumer refunds; states can also enforce | | When it applies | Stronger presumptions kick in during market shocks (like emergencies) if prices jump far above recent levels or competitors; inflation adjustments begin in 2026 for certain thresholds | | Penalties | Up to the lesser of $25,000 or 5% of the parent company’s yearly revenue per violation, or 5% if the company has “unfair leverage” | | Support for enforcement | New funding for the FTC through 2033 to carry out this work |

Small businesses may have a defense if their parent company made under $100 million in the prior year and they can show the price increase came from higher, uncontrollable costs; this threshold will also rise with inflation over time .