The Price Gouging Prevention Act of 2025 makes it illegal to charge "grossly excessive prices" for goods and services, with the Federal Trade Commission gaining expanded powers to enforce the ban and impose civil penalties up to 5% of revenue on large companies with over $1 billion in annual earnings or dominant market positions. During declared emergencies or severe market disruptions, the FTC can presume price gouging has occurred if prices jump above 120% of pre-crisis levels without justified cost increases, while small businesses under $100 million in revenue are permitted to raise prices if forced by uncontrollable cost increases. The legislation requires the FTC to issue detailed regulations within 180 days defining key terms, directs publicly traded companies to disclose pricing information to the SEC when market shocks occur, and grants state attorneys general authority to sue violators on behalf of their residents. The bill appropriates $1 billion through 2033 to support SEC enforcement and administration of the new rules.
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