Price gouging prohibited

(a) Prohibition (1) In general No person, without regard to the position of such person in a supply chain or distribution network, may sell or offer for sale in the United States a tariffed good at an unreasonably high price during the 5-year period that follows the date on which any tariff or planned tariff applicable to such tariffed good entered into force or was demonstrated by a written or spoken statement, as the case may be. (2) Unreasonably high price (A) In general For purposes of this section, a person is selling or offering for sale a tariffed good at an unreasonably high price if such person— (i) has raised the price of a tariffed good that is a final good by more than the amount of the costs directly generated— (I) by the imposition of a tariff with respect to such good; or (II) by— (aa) the imposition of a tariff with respect to such good; and (bb) additional costs (not including costs relating to increased executive compensation or share repurchase programs) incurred by such person in providing such good that demonstrate a tariff was not used by such person as a pretext for a price increase; (ii) has raised the price of a tariffed good that is a good assembled, in whole or in part, in the United States and with respect to which a tariff applies to a component of such good by more than the amount of the costs directly generated— (I) by the imposition of a tariff with respect to such component; or (II) by— (aa) the imposition of a tariff with respect to such component; and (bb) additional costs (not including costs relating to increased executive compensation or share repurchase programs) incurred by such person in providing such good that demonstrate a tariff was not used by such person as a pretext for a price increase; or (iii) has raised the price of a tariffed good that is a component by more than the amount of the costs directly generated— (I) by the imposition of a tariff with respect to such component; or (II) by— (aa) the imposition of a tariff with respect to such component; and (bb) additional costs (not including costs relating to increased executive compensation or share repurchase programs) incurred by such person in providing such good that demonstrate a tariff was not used by such person as a pretext for a price increase. (B) Planned tariffs With respect to a tariffed good described in section 2(7)(D), no costs may be determined to be directly generated by the imposition of a tariff with respect to such good before the date on which a tariff enters into force with respect to such good. (C) Baseline price determinations For purposes of this paragraph, the price of a tariffed good prior to the date on which any tariff or planned tariff applicable to such tariffed good entered into force or was demonstrated by a written or spoken statement, as the case may be, shall be determined by reference to the average price of such good during the 180-day period preceding such date. (b) Exemption (1) In general Subsection (a) does not apply to the sale, or offering for sale, of a good by a person if the ultimate parent entity with respect to such person earned less than $100,000,000 in gross revenue from goods sold in the United States during the 12-month period preceding such sale or offer. (2) Inflation adjustment In January of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Commission shall adjust the amount specified in paragraph (1) by the percentage change in the consumer price index for all urban consumers published by the Bureau of Labor Statistics with respect to the 12-month period preceding the date of such adjustment. (c) Presumption of violation (1) In general With respect to any tariff-related shock date, a person shall be presumed to be in violation of subsection (a) if a preponderance of the evidence demonstrates— (A) such person has unfair leverage (as described in paragraph (3)); and (B) such person sold or offered for sale on such date a tariffed good at a price that was greater than the average price of such good during the 180-day period preceding the date on which the most recent tariff or planned tariff applicable to such good entered into force or was demonstrated by a written or spoken statement, as the case may be. (2) Rebuttal A person may rebut a presumption under paragraph (1) if such person demonstrates by clear and convincing evidence that the relevant increase in the price of a tariffed good is attributable, in full, to costs directly generated— (A) by the imposition of a tariff with respect to such tariffed good; or (B) by— (i) the imposition of a tariff with respect to such tariffed good; and (ii) additional costs (not including costs relating to increased executive compensation or share repurchase programs) incurred by such person in providing such tariffed good that demonstrate that such tariff was not used by such person as a pretext for such increase. (3) Unfair leverage (A) Characteristics For purposes of this subsection, a person has unfair leverage if such person or the ultimate parent entity of such person— (i) earned at least $1,000,000,000 in gross revenue from goods sold in the United States during the 12-month period preceding the relevant sale or offer; or (ii) satisfies another characteristic set forth in a regulation promulgated by the Commission with respect to determining unfair leverage. (B) Inflation adjustment In January of the first year beginning after the date of the enactment of this Act, and annually thereafter, the Commission shall adjust the amount specified in subparagraph (A)(i) by the percentage change in the consumer price index for all urban consumers published by the Bureau of Labor Statistics with respect to the 12-month period preceding the date of such adjustment. (C) Considerations In promulgating regulations under subparagraph (A)(ii), the Commission shall consider the capacity of a person to do the following: (i) Absorb, in whole or in part, costs directly generated by a tariff. (ii) Increase production, in the United States, of a good that is identical or substantially similar to a tariffed good. (d) Regulations (1) In general The Commission may promulgate, in accordance with section 553 of title 5, United States Code, such regulations as may be necessary to carry out this section. (2) Interagency consultation The Commission, in promulgating regulations under this subsection, shall consult with the United States Trade Representative, the United States International Trade Commission, U.S. Customs and Border Protection, and the Bureau of Labor Statistics. (e) Enforcement by Commission (1) Unfair or deceptive acts or practices A violation of this section or a regulation promulgated under this section shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (2) Powers of Commission The Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates this section or a regulation promulgated under this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (3) Authority preserved Nothing in this section may be construed to limit the authority of the Commission under any other provision of law. (f) Actions by States (1) In general In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of this section or a regulation promulgated under this section, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court or an appropriate district court of the United States to— (A) enjoin such act or practice; (B) enforce compliance with this section or such regulation; (C) obtain damages, restitution, or other compensation on behalf of residents of the State; or (D) obtain such other legal and equitable relief as the court may consider to be appropriate. (2) Notice Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Commission immediately upon the filing of the action. (3) Authority of Commission On receiving notice under paragraph (2) of an action under this subsection, the Commission shall have the right— (A) to intervene in the action; (B) upon so intervening, to be heard on all matters arising therein; and (C) to file petitions for appeal. (4) Rules of construction (A) Exercising of certain powers For purposes of bringing a civil action under this subsection, nothing in this Act may be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. (B) State proceedings Nothing in this subsection may be construed to prohibit an authorized official of a State from initiating or continuing any proceeding in a court of the State for a violation of any civil or criminal law of the State. (g) Effect on other laws Nothing in this section may be construed to preempt or otherwise affect any State or local law. (h) Reporting by consumers and related investigations (1) In general Not later than 180 days after the date of the enactment of this Act, the Commission shall establish a mechanism for consumers to report to the Commission potential violations of this section. (2) Requirements The mechanism established under paragraph (1) shall allow a consumer to report a potential violation by a variety of means, including the following: (A) A telephone number. (B) A mailing address. (C) A website. (3) Consideration Not later than 180 days after the date of the enactment of this Act, the Commission shall promulgate regulations establishing, and providing a detailed description of, the process by which the Commission shall consider reports provided through the mechanism established under paragraph (1) and, if applicable, open investigations into potential violations of this section. (4) Rule of construction Nothing in this subsection may be construed to preclude the Commission from unilaterally initiating an investigation of a potential violation of this section.