Protecting Consumers from Unjustified Price Hikes Following New Tariffs.
This law aims to stop large companies from raising prices excessively on goods affected by new tariffs. If a product or its components face a tariff, sellers can only increase the price by the amount covering the actual tariff costs and other legitimate expenses, protecting consumers from unfair profiteering based on trade policy changes. These rules apply for five years after a tariff is imposed or announced.
Key points
Prohibits raising prices on tariff-affected goods by more than the actual costs directly caused by the tariff, excluding costs related to increased executive compensation or stock buyback programs.
Large companies (over $1 billion in annual revenue) raising prices after major tariff changes are presumed to be violating the law unless they prove the increase is fully justified by costs.
The Federal Trade Commission (FTC) must create a system (phone, website) for consumers to report potential instances of unjustified price increases.
Introduced
Citizen Poll