Price Gouging Prevention Act of 2025
Summary
The Price Gouging Prevention Act of 2025 aims to prevent businesses from selling goods or services at excessively high prices during exceptional market shocks, such as natural disasters or public health emergencies. It grants the Federal Trade Commission (FTC) expanded authority to seek injunctions and equitable relief against price gouging. The bill also requires certain companies to disclose pricing information in their SEC filings during periods of market disruption.
Expected Effects
The Act would likely lead to increased government oversight of pricing practices during emergencies. It could also deter businesses from significantly raising prices during times of crisis due to the threat of legal action and penalties. The required SEC disclosures may increase transparency regarding corporate pricing strategies.
Potential Benefits
- Protects consumers from exploitation during emergencies.
- Empowers the FTC and state attorneys general to take action against price gougers.
- Increases transparency in corporate pricing practices.
- May help to stabilize prices during times of crisis.
- Provides funding to the FTC to carry out its duties.
Potential Disadvantages
- May create ambiguity regarding what constitutes a "grossly excessive price".
- Could lead to businesses being hesitant to increase prices even when justified by increased costs.
- May disproportionately affect smaller businesses that lack the resources to navigate complex regulations.
- Could potentially lead to shortages if businesses choose not to sell goods or services rather than risk being accused of price gouging.
- The definition of "unfair leverage" could be subject to interpretation and potential abuse.
Most Disadvantaged Areas:
Constitutional Alignment
The Price Gouging Prevention Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By addressing price gouging, the Act seeks to prevent unfair business practices that could disrupt the flow of goods and services across state lines. The Tenth Amendment reserves powers not delegated to the federal government to the states, but this Act does not appear to infringe on state powers, as it allows state attorneys general to also bring civil actions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).