H.R.3306 - Truth in Tariffs Act (119th Congress)
Summary
H.R.3306, the "Truth in Tariffs Act," aims to increase transparency regarding the impact of tariffs on consumer goods. It requires sellers to display the portion of a product's price attributable to covered tariffs, defined as those imposed on a discretionary basis by the President after January 20, 2025. Small businesses are exempt from this requirement.
The Federal Trade Commission (FTC) is tasked with enforcing the Act and creating regulations to carry it out. Violations of the Act will be treated as unfair or deceptive acts or practices under the Federal Trade Commission Act.
The Act is intended to inform consumers about the direct costs of tariffs, potentially influencing their purchasing decisions and increasing accountability for tariff policies.
Expected Effects
Consumers will see a 'tariff surcharge' on applicable goods, showing the direct cost added by tariffs. This increased transparency could lead to more informed consumer choices. It may also influence public opinion regarding specific tariff policies.
Businesses, excluding small businesses, will need to implement systems to track and display tariff surcharges. The FTC will likely develop regulations to standardize the display of this information.
Potential Benefits
- Increased consumer awareness of the cost of tariffs on goods.
- Greater transparency in pricing, potentially leading to more informed purchasing decisions.
- Potential for increased accountability for presidential tariff decisions.
- May encourage businesses to seek ways to reduce tariff burdens on consumers.
- Could lead to a more informed public debate on trade policy.
Most Benefited Areas:
Potential Disadvantages
- Compliance costs for businesses required to display tariff surcharges.
- Potential for consumer confusion if the tariff surcharge is not clearly explained.
- May disproportionately affect businesses that rely on imported goods subject to tariffs.
- Possible unintended consequences on consumer behavior and market dynamics.
- The exemption for small businesses could create an uneven playing field.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations. By requiring transparency in the pricing of goods affected by tariffs, the bill seeks to regulate the flow of commerce and provide consumers with information relevant to their purchasing decisions.
The delegation of regulatory authority to the Federal Trade Commission (FTC) is also consistent with established constitutional principles, as Congress can delegate rulemaking power to administrative agencies to implement and enforce laws. The bill specifies that the FTC's regulations must be in accordance with section 553 of title 5, United States Code, ensuring adherence to administrative procedure requirements.
However, the constitutionality of the underlying tariffs themselves, which this bill seeks to make transparent, could be subject to debate depending on the specific legal authority invoked for their imposition.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).