Price Gouging Prevention Act of 2025

Protection Against Excessive Pricing: The bill makes it unlawful to sell goods or services at a grossly excessive price, regardless of where the person sits in the supply chain (Section 3(a)).

Consumer Redress: The Federal Trade Commission is granted the power to obtain damages, restitution, or other compensation on behalf of aggrieved consumers (Section 3(f)(2)(D)(v)).

State-Level Enforcement: State Attorneys General can bring civil actions to obtain injunctions, civil penalties, or restitution for the residents of their state (Section 3(g)(1)).

Increased Transparency: Covered issuers must provide detailed disclosures in SEC filings regarding changes in sales volume, average prices, gross margins, and pricing strategies following an exceptional market shock (Section 4(b)).

Burden on Smaller Entities: While there is an affirmative defense for those with less than $100,000,000 in gross revenue, entities must still demonstrate through a preponderance of the evidence that price increases were due to uncontrollable additional costs (Section 3(b)(1)).

Presumption of Violation: During an exceptional market shock, a person may be presumed to be in violation if they have "unfair leverage" or use the shock as a pretext to increase prices (Section 3(c)).

Strict Evidentiary Standards for Rebuttal: To rebut a presumption of violation during a market shock, a person must demonstrate their case by "clear and convincing evidence" regarding additional costs (Section 3(d)).

Regulatory Compliance Costs: Covered issuers are required to include specific, detailed tabular data and narrative disclosures in their Form 10-K or Form 10-Q filings (Section 4(b)).