Federal bill would make price gouging a crime with fines up to 5% of revenue

What does this do?

HR 4528 would make it a federal crime for businesses to charge "grossly excessive" prices for goods and services. The FTC would define that standard, though the bill suggests prices 20% or more above a product's normal price over the prior six months could qualify. During declared emergencies or major market disruptions, businesses that raise prices significantly compared to what they charged in the 120 days before the disruption would be automatically suspected of price gouging.

Who does it affect?

Large companies with at least $1 billion in annual revenue, or companies that dominate their market, would face stricter rules and heavier fines. Smaller businesses earning under $100 million annually have more protection if they can show price increases were driven by costs outside their control.

Why does it matter?

The FTC and state attorneys general would gain new authority to investigate and sue companies suspected of price gouging. Publicly traded companies would also be required to disclose detailed pricing information, profit margin changes, and future pricing plans in SEC filings whenever a major market disruption occurs.

What does it cost, and who pays?

• Fines up to 5% of annual revenue
• $1 billion for FTC enforcement
• FTC funding runs through 2033