I 

118TH CONGRESS 

2D SESSION H. R. 7390 

To make price gouging unlawful, to expand the ability of the Federal Trade 

Commission to seek permanent injunctions and equitable relief, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2024 

Ms. SCHAKOWSKY (for herself, Mr. NADLER, Mr. KHANNA, Ms. PORTER, Ms. 

NORTON, Mr. JOHNSON of Georgia, Mr. TONKO, Ms. SCANLON, and Mr. 

TAKANO) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on 

Financial Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To make price gouging unlawful, to expand the ability of 

the Federal Trade Commission to seek permanent injunctions and equitable relief, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Price Gouging Prevention Act of 2024’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Prevention of price gouging. 

Sec. 4. Disclosures in SEC filings. 

Sec. 5. Funding. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Federal Trade Commission. 

5 (2) CRITICAL TRADING PARTNER.—The term 

6 ‘‘critical trading partner’’ means a person that has 

7 the ability to restrict, impede, or foreclose access to 

8 the inputs, customers, partners, goods, services, 

9 technology, platform, facilities, or tools of such per10 son in a way that harms competition or limits the 

11 ability of the customers or suppliers of such person 

12 to carry out business effectively. 

13 (3) EXCEPTIONAL MARKET SHOCK.—The term 

14 ‘‘exceptional market shock’’ means any change or 

15 imminently threatened (as determined under guid16 ance issued by the Commission) change in the mar17 ket for a good or service resulting from a natural 

18 disaster, failure or shortage of electric power or 

19 other source of energy, concerted labor action, lock20 out, civil disorder, war, military action, national or 

21 local emergency, public health emergency, or any 

22 other cause of an atypical disruption in such market. 


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1 (4) GOOD OR SERVICE.—The term ‘‘good or 

2 service’’ means any good or service offered in com3 merce. 

4 (5) STATE.—The term ‘‘State’’ means each of 

5 the several States, the District of Columbia, each 

6 commonwealth, territory, or possession of the United 

7 States, and each federally recognized Indian Tribe. 

8 (6) ULTIMATE PARENT ENTITY.—The term ‘‘ul9 timate parent entity’’ has the meaning given such 

10 term in section 801.1 of title 16, Code of Federal 

11 Regulations (or any successor regulation). 

12 SEC. 3. PREVENTION OF PRICE GOUGING. 

13 (a) IN GENERAL.—It shall be unlawful for a person 

14 to sell or offer for sale a good or service at a grossly exces15 sive price, regardless of the person’s position in a supply 

16 chain or distribution network. 

17 (b) AFFIRMATIVE DEFENSE.— 

18 (1) IN GENERAL.—Subsection (a) shall not 

19 apply to the sale, or offering for sale, of a good or 

20 service by a person if— 

21 (A) the person’s ultimate parent entity 

22 earned less than $100,000,000 in gross revenue 

23 from goods or services provided in the United 

24 States during the 12-month period preceding 


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1 the sale or offer that allegedly violates sub2 section (a); and 

3 (B) the person demonstrates by a prepon4 derance of the evidence that the increase in the 

5 price of the good or service involved is directly 

6 attributable to additional costs that are— 

7 (i) not within the control of the per8 son; and 

9 (ii) incurred by the person in pro10 curing, acquiring, distributing, or pro11 viding the good or service. 

12 (2) INFLATION ADJUSTMENT.—Beginning on 

13 January 1, 2025, the Commission shall annually ad14 just the amount specified in paragraph (1)(A) by the 

15 percentage change in the consumer price index for 

16 all urban consumers published by the Bureau of 

17 Labor Statistics for the 12-month period ending on 

18 December 31 of the previous year. 

19 (c) PRESUMPTIVE VIOLATIONS.—A person shall be 

20 presumed to be in violation of subsection (a) if, during 

21 an exceptional market shock, it is shown by a preponder22 ance of the evidence that the person— 

23 (1)(A) has unfair leverage; or 


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1 (B) is using the effects or circumstances related 

2 to an exceptional market shock as a pretext to in3 crease prices; and 

4 (2) regardless of the person’s position in a sup5 ply chain or distribution network, sells or offers for 

6 sale a good or service at an excessive price compared 

7 to— 

8 (A) the average price at which the good or 

9 service was sold or offered for sale by all com10 peting sellers in the market during the 120-day 

11 period preceding such exceptional market shock; 

12 or 

13 (B) the average price at which the good or 

14 service was sold or offered for sale by the per15 son in the market during the 120-day period 

16 preceding such exceptional market shock. 

17 (d) REBUTTAL.—A person may rebut a presumption 

18 under subsection (c) if the person demonstrates by clear 

19 and convincing evidence that the increase in the price of 

20 the good or service involved is directly attributable to addi21 tional costs that are— 

22 (1) not within the control of the person; and 

23 (2) incurred by the person in procuring, acquir24 ing, distributing, or providing the good or service. 

25 (e) UNFAIR LEVERAGE.— 


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1 (1) IN GENERAL.— 

2 (A) CHARACTERISTICS OF UNFAIR LEVER3 AGE.—For purposes of subsection (c), a person 

4 has unfair leverage if the person— 

5 (i) earned at least $1,000,000,000 in 

6 gross revenue from goods or services pro7 vided in the United States during the 12- 

8 month period preceding the sale or offer 

9 that allegedly violates subsection (a); 

10 (ii) discriminates between otherwise 

11 equal trading partners in the same market 

12 by applying differential prices or condi13 tions; 

14 (iii) is a critical trading partner; 

15 (iv) engages in unfair, deceptive, or 

16 abusive acts or practices; 

17 (v) has a dominant position in— 

18 (I) the conduct of any business, 

19 trade or commerce; 

20 (II) any labor market; or 

21 (III) the furnishing of any serv22 ice; or 

23 (vi) has a characteristic described in a 

24 rule promulgated by the Commission that 

25 further defines unfair leverage. 


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1 (B) PRESUMPTION OF A DOMINANT POSI2 TION.—For purposes of subparagraph (A)(v), a 

3 person shall be presumed to have a dominant 

4 position if— 

5 (i) evidence shows that the person is 

6 not constrained by meaningful competitive 

7 pressures; or 

8 (ii) the person— 

9 (I) has a share of 40 percent or 

10 greater of a relevant market as a sell11 er; or 

12 (II) has a share of 30 percent or 

13 greater of a relevant market as a 

14 buyer. 

15 (2) INFLATION ADJUSTMENT.—Beginning on 

16 January 1, 2025, the Commission shall annually ad17 just the amount specified in paragraph (1)(A)(i) by 

18 the percentage change in the consumer price index 

19 for all urban consumers published by the Bureau of 

20 Labor Statistics for the 12-month period ending on 

21 December 31 of the previous year. 

22 (f) ENFORCEMENT BY THE COMMISSION.— 

23 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC24 TICES.—A violation of this section or a regulation 

25 promulgated under this section shall be treated as a 


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1 violation of a rule defining an unfair or deceptive act 

2 or practice prescribed under section 18(a)(1)(B) of 

3 the Federal Trade Commission Act (15 U.S.C. 

4 57a(a)(1)(B)). 

5 (2) POWERS OF THE COMMISSION.— 

6 (A) IN GENERAL.—Except as provided by 

7 subparagraphs (D) and (E), the Commission 

8 shall enforce this section in the same manner, 

9 by the same means, and with the same jurisdic10 tion, powers, and duties as though all applicable 

11 terms and provisions of the Federal Trade 

12 Commission Act (15 U.S.C. 41 et seq.) were in13 corporated into and made a part of this section. 

14 (B) PRIVILEGES AND IMMUNITIES.—Any 

15 person who violates this section or a regulation 

16 promulgated under this section shall be subject 

17 to the penalties and entitled to the privileges 

18 and immunities provided in the Federal Trade 

19 Commission Act (15 U.S.C. 41 et seq.). 

20 (C) AUTHORITY PRESERVED.—Nothing in 

21 this section shall be construed to limit the au22 thority of the Commission under any other pro23 vision of law. 

24 (D) INDEPENDENT LITIGATION AUTHOR25 ITY.—If the Commission has reason to believe 


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1 that a person has violated this section, the 

2 Commission may bring a civil action in any ap3 propriate United States district court to— 

4 (i) enjoin any further such violation 

5 by such person; 

6 (ii) enforce compliance with this sec7 tion; 

8 (iii) obtain a permanent, temporary, 

9 or preliminary injunction; 

10 (iv) obtain civil penalties; 

11 (v) obtain damages, restitution, or 

12 other compensation on behalf of aggrieved 

13 consumers; or 

14 (vi) obtain any other appropriate equi15 table relief. 

16 (E) CIVIL PENALTIES.—In addition to any 

17 other penalties as may be prescribed by law, 

18 each violation of this section shall carry a civil 

19 penalty not to exceed— 

20 (i) if the person who committed the 

21 violation does not have unfair leverage (as 

22 described in subsection (e)), the lesser of— 

23 (I) $25,000; or 

24 (II) 5 percent of the revenues 

25 earned by the person’s ultimate parVerDate Sep 11 2014 04:10 Feb 23, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7390.IH H7390

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1 ent entity during the preceding 12- 

2 month period; or 

3 (ii) if the person who committed the 

4 violation has unfair leverage, 5 percent of 

5 the revenues earned by the person’s ulti6 mate parent entity during the preceding 

7 12-month period. 

8 (F) RULEMAKING.— 

9 (i) IN GENERAL.—The Commission 

10 may promulgate in accordance with section 

11 553 of title 5, United States Code, such 

12 rules as may be necessary to carry out this 

13 section, including guidelines regarding 

14 what constitutes an exceptional market 

15 shock or that provide for additional char16 acteristics that demonstrate that a person 

17 has unfair leverage. 

18 (ii) REQUIRED GUIDANCE.—Not later 

19 than 180 days after the date of enactment 

20 of this Act, the Commission shall promul21 gate regulations regarding violations of 

22 this section, which shall include guidelines 

23 on, for the purposes of this Act, what con24 stitutes a market, a grossly excessive price 


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1 for a good or service, and an excessive 

2 price for a good or service. 

3 (iii) DEFINITION OF GROSSLY EXCES4 SIVE PRICE.— 

5 (I) IN GENERAL.—For purposes 

6 of subsection (a) and the guidance de7 scribed in clause (ii), the Commission 

8 shall define the term ‘‘grossly exces9 sive price’’, which shall include— 

10 (aa) subject to subclause 

11 (II), a price for a good or service 

12 that is equal to an amount not 

13 less than 20 percent greater than 

14 the average price for such good 

15 or service in the market during 

16 the 6-month period preceding the 

17 sale or offer that allegedly vio18 lates subsection (a); and 

19 (bb) any other metric identi20 fied by the Commission. 

21 (II) DISCRETION OF THE COM22 MISSION.—For purposes of defining 

23 ‘‘grossly excessive price’’, the Commis24 sion may reduce the percentage deVerDate Sep 11 2014 04:10 Feb 23, 2024 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7390.IH H7390

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1 scribed in matter (aa) at its discre2 tion. 

3 (g) ENFORCEMENT BY STATE ATTORNEYS GEN4 ERAL.— 

5 (1) IN GENERAL.—If the attorney general of a 

6 State has reason to believe that any person has vio7 lated or is violating this section, the attorney gen8 eral, in addition to any authority it may have to 

9 bring an action in State court under the laws of 

10 such State, may bring a civil action in any appro11 priate United States district court or in any other 

12 court of competent jurisdiction, including a State 

13 court, to— 

14 (A) enjoin any further such violation by 

15 such person; 

16 (B) enforce compliance with this section; 

17 (C) obtain a permanent, temporary, or pre18 liminary injunction; 

19 (D) obtain civil penalties; 

20 (E) obtain damages, restitution, or other 

21 compensation on behalf of residents of the 

22 State; or 

23 (F) obtain any other appropriate equitable 

24 relief. 

25 (2) RIGHTS OF THE COMMISSION.— 


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1 (A) NOTICE TO THE COMMISSION.— 

2 (i) IN GENERAL.—Except as provided 

3 in clause (ii), before initiating a civil action 

4 under paragraph (1), the attorney general 

5 of the State involved shall provide to the 

6 Commission a written notice of such action 

7 and a copy of the complaint for such ac8 tion. 

9 (ii) EXCEPTION.—If the attorney gen10 eral determines that it is not feasible to 

11 provide the notice described in clause (i) 

12 before initiating a civil action under this 

13 subsection, the attorney general shall pro14 vide written notice of the action and a copy 

15 of the complaint to the Commission imme16 diately upon initiating the civil action. 

17 (B) INTERVENTION.—The Commission 

18 may— 

19 (i) intervene in any civil action 

20 brought by the attorney general, official, or 

21 agency of a State under this subsection; 

22 and 

23 (ii) upon intervening— 

24 (I) be heard on all matters aris25 ing in the civil action; and 


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1 (II) file petitions for appeal of a 

2 decision in the civil action. 

3 (3) INVESTIGATORY POWERS.—Nothing in this 

4 subsection may be construed to prevent the attorney 

5 general of a State from exercising the powers con6 ferred on the attorney general by the laws of the 

7 State to conduct investigations, to administer oaths 

8 or affirmations, or to compel the attendance of wit9 nesses or the production of documentary or other 

10 evidence. 

11 (4) LIMITATION ON STATE ACTION WHILE FED12 ERAL ACTION IS PENDING.—If the Commission has 

13 instituted a civil action for a violation of this section, 

14 no State attorney general may bring an action under 

15 this subsection during the pendency of that action 

16 against any defendant named in the complaint of the 

17 Commission for any violation of this section alleged 

18 in the complaint. 

19 (5) RELATIONSHIP WITH STATE-LAW CLAIMS.— 

20 If the attorney general of a State has authority to 

21 bring an action under State law directed at acts or 

22 practices that also violate this section, the attorney 

23 general may assert a claim under State law and a 

24 claim under this section in the same civil action. 

25 (6) VENUE; SERVICE OF PROCESS.— 


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1 (A) VENUE.—Any action brought under 

2 paragraph (1) may be brought in— 

3 (i) the district court of the United 

4 States that meets applicable requirements 

5 relating to venue under section 1391 of 

6 title 28, United States Code; or 

7 (ii) another court of competent juris8 diction. 

9 (B) SERVICE OF PROCESS.—In an action 

10 brought under paragraph (1), process may be 

11 served in any district in which— 

12 (i) the defendant is an inhabitant, 

13 may be found, or transacts business; or 

14 (ii) venue is proper under section 

15 1391 of title 28, United States Code. 

16 (7) ACTIONS BY OTHER STATE OFFICIALS.— 

17 (A) IN GENERAL.—In addition to civil ac18 tions brought by an attorney general under 

19 paragraph (1), any other officer of a State who 

20 is authorized by the State to do so may bring 

21 a civil action under paragraph (1), subject to 

22 the same requirements and limitations that 

23 apply under this subsection to civil actions 

24 brought by attorneys general. 


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1 (B) SAVINGS PROVISION.—Nothing in this 

2 subsection may be construed to prohibit an au3 thorized official of a State from initiating or 

4 continuing any proceeding in a court of the 

5 State for a violation of any civil or criminal law 

6 of the State. 

7 (8) EFFECT ON STATE LAWS.—Nothing in this 

8 section shall preempt or otherwise affect any State 

9 or local law. 

10 SEC. 4. DISCLOSURES IN SEC FILINGS. 

11 (a) DEFINITIONS.—In this section: 

12 (1) COVERED ISSUER.—The term ‘‘covered 

13 issuer’’ means an issuer that— 

14 (A) has a covered quarter; and 

15 (B) in the quarter following the covered 

16 quarter described in subparagraph (A), is re17 quired to submit Form 10–Q or Form 10–K. 

18 (2) COVERED QUARTER.—The term ‘‘covered 

19 quarter’’ means a quarter during which there is an 

20 exceptional market shock. 

21 (3) FORM 10–K.—The term ‘‘Form 10–K’’ 

22 means the form described in section 249.310 of title 

23 17, Code of Federal Regulations, or any successor 

24 regulation. 


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1 (4) FORM 10–Q.—The term ‘‘Form 10–Q’’ 

2 means the form described in section 240.15d–13 of 

3 title 17, Code of Federal Regulations, or any suc4 cessor regulation. 

5 (5) ISSUER.—The term ‘‘issuer’’ has the mean6 ing given the term in section 3(a) of the Securities 

7 Exchange Act of 1934 (15 U.S.C. 78c(a)). 

8 (b) INCLUSION IN FILING.—Each covered issuer, in 

9 each Form 10–K or Form 10–Q that the covered issuer 

10 is required to file in a quarter following a covered quarter, 

11 shall include in the filing the following information with 

12 respect to that covered quarter, as compared with the 

13 quarter preceding that covered quarter: 

14 (1) The percentage change in the volume of 

15 goods or services sold, and the percentage change in 

16 the average sales price of those goods or services, 

17 which shall be broken down by material product cat18 egories, when relevant, and presented in a tabular 

19 format. 

20 (2) The gross margins of the covered issuer, 

21 which shall be broken down by material product cat22 egories, when relevant, and presented in a tabular 

23 format. 


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1 (3) Presented in tabular format, the share of 

2 the increase in revenue of the covered issuer that is 

3 attributable to— 

4 (A) a change in the cost of goods or serv5 ices sold by the covered issuer; and 

6 (B) a change in the volume of goods or 

7 services sold by the covered issuer. 

8 (4) The percentage change in the costs of the 

9 covered issuer, which shall be broken down by cat10 egory and presented in tabular format. 

11 (5) In dollars, the change in the costs of the 

12 covered issuer and the revenue of the covered issuer, 

13 which shall be presented in tabular format. 

14 (6) A detailed narrative disclosure of the pric15 ing strategy of the covered issuer, which shall in16 clude— 

17 (A) an explanation for any increase in the 

18 gross margins of material product categories, 

19 including all material causes for such an in20 crease, an explanation of how each such mate21 rial cause affected such an increase, and a de22 scription of the relative importance of each such 

23 material cause with respect to such an increase; 


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1 (B) an explanation for the decisions made 

2 by the covered issuer with respect to the prices 

3 of goods or services sold by the covered issuer; 

4 (C) if the covered issuer increased prices at 

5 a rate that was greater than the rate at which 

6 the costs incurred by the covered issuer in7 creased, the rationale and objectives for increas8 ing prices in such a manner; and 

9 (D) a description of conditions under 

10 which the covered issuer plans to modify pricing 

11 after the date on which the covered issuer sub12 mits the filing. 

13 (c) REGULATIONS.—Not later than 180 days after 

14 the date of enactment of this Act, the Securities and Ex15 change Commission shall issue final regulations, or amend 

16 existing regulations of the Commission, to carry out this 

17 section. 

18 (d) EFFECTIVE DATE.—This section shall take effect 

19 on the date on which the Securities and Exchange Com20 mission issues final regulations under subsection (c) or 

21 completes the amendments required under that sub22 section, as applicable. 

23 SEC. 5. FUNDING. 

24 In addition to amounts otherwise available, there is 

25 appropriated to the Commission for fiscal year 2024, out 


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1 of any money in the Treasury not otherwise appropriated, 

2 $1,000,000,000, to remain available until September 30, 

3 2032, for carrying out work of the Commission. 

Æ 


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