As Chaotic Trump Tariffs Drive Price Hikes, Schakowsky, Deluzio, Warren, Baldwin Propose New Tools to Fight Price Gouging

Full Text of Bill (PDF) | Bill One-Pager (PDF)

WASHINGTON - U.S. Representatives Jan Schakowsky (IL-09) and Chris Deluzio (PA-17), along with U.S. Senators Elizabeth Warren (D-MA) and Tammy Baldwin (D-WI) reintroduced the Price Gouging Prevention Act to fight back against the corporate greed enabled by the Trump administration’s chaotic tariff policies. The bill would give the Federal Trade Commission (FTC) and state attorneys general new tools to enforce a federal ban against grossly excessive price increases.

The last five years have repeatedly shown us that giant corporations will take advantage of inflation and supply chain disruptions to expand their profit margins by raising prices higher than necessary to cover cost increases. President Trump’s on-again, off-again tariffs have created yet another opportunity for corporate price gouging. The tariff-driven uncertainty gives companies the opportunity to raise prices on all goods, regardless of whether they are actually subject to new tariffs, higher and for longer than what is necessary to cover any cost increases. Now, dozens of companies have reported raising the prices of goods and services unaffected by Trump’s tariffs. 

“President Donald Trump promised to lower costs, but we have seen the exact opposite. Greedy corporations are using the economic turmoil the Trump Administration has created to gouge the American people on everything from groceries to consumer goods. While these large corporations rake in record profits, families in my community and across the country are struggling to put food on the table,” said Congresswoman Jan Schakowsky. “Our bill will finally put an end to price gouging by empowering the FTC and state attorneys general to hold bad actors accountable when they take advantage of consumers."

“Prices are still too high, and inflation is still pounding folks. Especially now, we need to rein in monopolists and other huge corporations with the power to price gouge the American people,” said Congressman Chris Deluzio. “By upping FTC enforcement practices and boosting transparency, this bill will take some of the squeeze off American families and small businesses suffering under the thumb of out-of-control corporate power.”

“Donald Trump’s reckless tariff policies are giving companies cover to squeeze families and raise prices more than necessary. My bill is an opportunity for Congress to stand up for families by cracking down on price gouging and fighting back against corporate abuse,” said Senator Elizabeth Warren.

“The biggest corporations in our country jack up the cost of everyday household items, take in record profits, and give their executives huge bonuses – all on the backs of hard-working Wisconsin families. Donald Trump claimed he would lower prices – so far, he has done just the opposite and is even opening the door to more price gouging. But, if we pass this bill, we can rein that in and give Wisconsinites some breathing room and allow them to save for the future,” said Senator Tammy Baldwin. “Our bill will finally crack down on corporate greed and help stop those big companies at the top of the food chain from sticking families with exorbitant costs.”

The Price Gouging Prevention Act of 2025 would help the federal government and state attorneys general fight corporate price gouging. The bill would: 

• Prohibit price gouging at the federal level—anytime and anywhere. The bill would clarify that price gouging is an unfair and deceptive practice under the FTC Act. It would allow the FTC and state attorneys general to stop sellers from charging a grossly excessive price, regardless of where the price gouging occurs in a supply chain or distribution network;
• Help enforcers establish when price gouging is occurring during a significant shift in trade policy. The bill lists a set of exceptional market shocks—including an “abrupt or significant shift in trade policy”—and outlines a standard for a presumptive violation of the price gouging prohibition during such a shock, such as when companies brag about increasing prices;
• Create an affirmative defense for small businesses acting in good faith. Small and local businesses sometimes must raise prices in response to crisis-driven increases in their costs because they have little negotiating power with their price-gouging suppliers. This affirmative defense protects small businesses earning less than $100 million from frivolous litigation if they show legitimate cost increases;
• Require public companies to clearly disclose costs and pricing strategies. During periods of exceptional market shock, the bill requires public companies to transparently disclose and explain changes in their cost of goods sold, gross margins, and pricing strategies in their quarterly SEC filings; and
• Provide $1 billion in additional funding to the FTC to carry out its work.

Representatives Angie Craig (MN-02), Maggie Goodlander (NH-02), Henry C. “Hank” Johnson, Jr (GA-04), Ro Khanna (CA-17), Eleanor Holmes Norton (DC-AL), Jerry Nadler (NY-12), Mary Gay Scanlon (PA-05), Rashida Tlaib (MI-12), Pramila Jayapal (WA-07), Rosa DeLauro (CT-03) and Paul Tonko (NY-20) joined as co-sponsors. 

Senators Richard Blumenthal (D-CT), John Fetterman (D-PA), Andy Kim (D-NJ), Ed Markey (D-MA), Jeff Merkley (D-OR), Bernie Sanders (I-VT), Elissa Slotkin (D-MI), and Sheldon Whitehouse (D-RI) joined as co-sponsors. 

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