Washington, D.C. – Oregon’s U.S. Senator Jeff Merkley cosponsored the Price Gouging Prevention Act to fight back against the corporate greed enabled by the Trump Administration’s chaotic tariff policies. Merkley put his support behind the bill that would give the Federal Trade Commission (FTC) and state attorneys general new tools to enforce a federal ban against grossly excessive price increases that hurt families in Oregon and across the country.
“From outrageous prices for prescription medications, to the costs of groceries skyrocketing, it’s working families footing the bill while huge corporations gouge consumers to line their own pockets,” said Merkley. “Americans deserve basic consumer protections from this harmful practice, and we need the Price Gouging Prevention Act to put people over profits.”
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.
The Price Gouging Prevention Act is led by Senators Elizabeth Warren (D-Mass.) and Tammy Baldwin (D-Wis.). In addition to Merkley, this legislation is co-sponsored by Senators Richard Blumenthal (D-Conn.), John Fetterman (D-Pa.), Andy Kim (D-N.J.), Ed Markey (D-Mass.), Bernie Sanders (I-Vt.), Elissa Slotkin (D-Mich.), and Sheldon Whitehouse (D-R.I.). In the House of Representatives, this legislation was introduced by Representatives Jan Schakowsky (D-Ill.) and Chris Deluzio (D-Pa.).
Previously, Merkley, Warren, and 15 other Senate Democrats urged the FTC to investigate tariff-enabled corporate price gouging that is raising costs for American families and use its full authority to prevent it.
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.
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