Blumenthal & Colleagues Introduce Bill to Fight Price Gouging as Chaotic Trump Tariffs Drive Price Hikes

[Hartford, CT] – U.S. Senator Richard Blumenthal (D-CT) joined U.S. Senators Elizabeth Warren (D-MA) and Tammy Baldwin (D-WI) and U.S. Representatives Jan Schakowsky (D-IL) and Chris Deluzio (D-PA) in reintroducing 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.

“Consumers deserve and desperately need stronger protection against price gouging and unfair profiteering that this legislation will provide. As state Attorney in Connecticut, I saw firsthand how corporate greed leads wrongdoers to exploit loopholes in present law. American consumers should be safeguarded more effectively by imposing accountability and transparency,” said Blumenthal.

Giant corporations 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 from the tariffs. Now, dozens of companies have reported raising the prices of goods and services unaffected by Trump’s tariffs.

According to the Yale Budget Lab, tariffs are expected to push prices higher once again: according to its July 10 analysis, current tariff rates will causes prices to raise by 1.8% in the short-run, the equivalent of an average per household income loss of $2,400. This is exacerbated in certain industries: food prices are estimated to rise 3% in the short term and 2.7% overall, and consumer apparel is 37% higher in the short-run and 18% higher overall.

Last week, Blumenthal joined 16 other Democrats in urging 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:

1. 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;
2. 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;
3. 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;
4. 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
5. Provide $1 billion in additional funding to the FTC to carry out its work.

U.S. Senators 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) and U.S. Representatives Angie Craig (D-MN), Maggie Goodlander (D-NH), Hank Johnson (D-GA), Ro Khanna (D-CA), Eleanor Holmes Norton (D-DC), Jerry Nadler (D-NY), Mary Gay Scanlon (D-PA), Rashida Tlaib (D-MI), and Paul Tonko (D-NY) also co-sponsored the bill.

The bill is endorsed by the following labor groups and organizations: AFL-CIO, UAW, USW, Accountable.US/Accountable.NOW, American Economic Liberties Project, Consumer Federation of America, Economic Security Project Action, Farm Action Fund, Food & Water Watch, Groundwork Collaborative, National Consumer Law Center (on behalf of its low-income clients), P Street, and Public Citizen.

The full text of the bill is available here. A one-pager on the bill is available here. A video of Blumenthal’s press conference with Attorney General William Tong in Hartford today is available here.

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