Summary

Requires sellers to show U.S. consumers the portion of a product's price that is due to a covered tariff and label that amount the “tariff surcharge.” Small businesses are exempt. The Federal Trade Commission enforces the rule as an unfair or deceptive practice and can write regulations and use its full enforcement powers to implement the requirement. The rule takes effect 30 days after the section becomes law.

Key Points

• Sellers must show and label the part of a good’s price attributable to a covered tariff as the "tariff surcharge."
• Requirement begins 30 days after the section becomes law.
• Small businesses are exempt from the disclosure requirement.
• The Federal Trade Commission enforces the rule as an unfair or deceptive practice.
• The FTC can issue regulations and use its full enforcement powers to implement and enforce the rule.
• Applies to sales to U.S. consumers; the definition of "covered tariff" determines which tariffs trigger disclosure.
• Sellers will need to modify price labels, receipts, and online displays to show the surcharge.
• Noncompliance can lead to FTC investigations and enforcement actions under FTC authority.

Categories & Tags