No Gratuitous Overcharging for Ubiquitous Global Exports Act; No GOUGE Act
Summary
The "No Gratuitous Overcharging for Ubiquitous Global Exports Act" (No GOUGE Act) aims to prevent price gouging on goods subject to tariffs. It prohibits sellers from raising prices by more than the direct cost of the tariff. The bill empowers the Federal Trade Commission (FTC) to enforce these provisions and allows state attorneys general to bring civil actions.
Expected Effects
The Act could lead to more stable prices for consumers on tariffed goods by preventing companies from using tariffs as an excuse for excessive price increases. It also establishes mechanisms for consumer reporting and requires reports from the ITC, BLS, and FTC on price changes and enforcement activities. This may increase transparency and accountability in pricing practices related to tariffs.
Potential Benefits
- Prevents companies from exploiting tariffs to inflate prices beyond actual cost.
- Provides consumers with a mechanism to report potential price gouging.
- Increases transparency through required reports on price changes and enforcement.
- Empowers the FTC and state attorneys general to take action against price gouging.
- Could stabilize prices for consumers on goods affected by tariffs.
Potential Disadvantages
- May create additional regulatory burden for businesses, particularly those with complex supply chains.
- Could be difficult to accurately determine the direct cost of tariffs and justify price increases.
- The exemption for smaller businesses (under $100 million in gross revenue) might create loopholes.
- The 5-year limit on the prohibition might not be sufficient to address long-term tariff impacts.
- Potential for increased litigation and enforcement costs.
Most Disadvantaged Areas:
Constitutional Alignment
The Act aligns with Congress's power to regulate commerce among the states (Article I, Section 8, Clause 3). It also relates to the general welfare clause of the Constitution's preamble, as it aims to protect consumers from unfair pricing practices. The enforcement mechanisms granted to the FTC and state attorneys general are consistent with the principle of ensuring justice and domestic tranquility.
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).