Price Gouging Prevention Act of 2025
Sponsored By: Representative Rep. Schakowsky, Janice D. [D-IL-9]
Introduced
Summary
Ban on grossly excessive pricing for goods and services, plus stronger federal enforcement and mandatory disclosures for public companies during major market shocks. The law creates defenses for small sellers, defines unfair market leverage, and arms the Federal Trade Commission with new tools and funding.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Ban on price gouging with shock presumption
If enacted, it would be illegal to sell goods or services at a grossly excessive price, at any point in the supply chain. During an exceptional market shock, a seller would be presumed to violate if it has unfair leverage or uses the shock as a pretext and charges an excessive price versus its 120‑day pre‑shock average or competitors’ prices during the shock. The seller could rebut only with clear and convincing proof that higher prices came from costs outside its control. The bill would define terms like “exceptional market shock,” “critical trading partner,” and “ultimate parent entity.”
Stronger FTC and state price-gouging enforcement
The FTC would be able to sue to stop violations, get civil penalties, and return money to consumers, and it would have to issue rules within 180 days. For each violation, firms without unfair leverage would owe the lesser of $25,000 or 5% of their ultimate parent’s prior 12‑month revenue; firms with unfair leverage would owe 5%. Unfair leverage would include at least $1 billion in U.S. revenue (CPI‑U adjusted yearly starting January 1, 2026) or a dominant position, presumed at 40% seller share or 30% buyer share. State attorneys general could also sue, with notice to the FTC, and the FTC could join or appeal; parallel suits against the same defendant would be limited. The bill would give the FTC $1 billion for FY2025, available until September 30, 2033.
Small sellers' cost-based defense
Small sellers could use a legal defense if accused of grossly excessive pricing when their ultimate parent made under $100,000,000 in U.S. revenue in the prior 12 months. They would need to show, by a preponderance of the evidence, that any price increase came from costs they could not control. Starting January 1, 2026, the $100,000,000 cutoff would rise each year with CPI‑U.
Investor disclosures after market shocks
Public companies would have to add tables and a short explanation in the first 10‑Q or 10‑K after a quarter with an exceptional market shock. Disclosures would show changes in volume and average price by product category, gross margins, cost and revenue changes, and how much revenue gains came from costs versus volume. Firms would also explain their pricing strategy and reasons. The SEC would issue final rules within 180 days; the requirement would start when those rules are final.
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Sponsors & CoSponsors
Sponsor
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Cosponsors
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 7/17/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 7/17/2025
Rep. Nadler, Jerrold [D-NY-12]
NY • D
Sponsored 7/17/2025
Rep. Scanlon, Mary Gay [D-PA-5]
PA • D
Sponsored 7/17/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 7/17/2025
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 7/17/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 7/17/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 7/17/2025
Rep. Johnson, Henry C. "Hank," Jr. [D-GA-4]
GA • D
Sponsored 7/17/2025
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 7/17/2025
Craig
MN • D
Sponsored 7/17/2025
Rep. Goodlander, Maggie [D-NH-2]
NH • D
Sponsored 7/17/2025
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 12/18/2025
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 2/23/2026
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 2/23/2026
Roll Call Votes
No roll call votes available for this bill.
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