Stop Price Gouging in Grocery Stores Act of 2025
Summary
The "Stop Price Gouging in Grocery Stores Act of 2025" aims to prevent retail food stores from engaging in price gouging and surveillance-based price setting. It prohibits selling items at grossly excessive prices and using personal information to adjust prices. The bill also requires clear signage about the use of facial recognition technology and restricts the use of electronic shelf labels in larger stores.
Expected Effects
The Act will likely lead to increased regulatory oversight of retail food pricing practices. Consumers could see more stable and transparent pricing, while retailers may face increased compliance costs and potential legal challenges. The FTC would be responsible for enforcement, and states and consumers would have the right to bring civil actions.
Potential Benefits
- Protects consumers from excessive price increases on essential food items.
- Prevents retailers from exploiting personal data for price discrimination.
- Increases transparency in pricing practices through required disclosures.
- Empowers consumers with a private right of action to address violations.
- Encourages fair competition by preventing anti-consumer pricing strategies.
Potential Disadvantages
- Increased compliance costs for retail food stores, potentially leading to higher prices.
- Potential for ambiguity in defining "grossly excessive price," leading to litigation.
- Restrictions on electronic shelf labels may hinder innovation in pricing strategies.
- The Act may disproportionately affect smaller retailers with limited resources for compliance.
- Possible preemption of state laws could weaken consumer protections in some areas.
Most Disadvantaged Areas:
Constitutional Alignment
The Act's focus on regulating commerce aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. The Act also includes provisions related to consumer protection, which are generally considered within the purview of congressional authority. The private right of action and enforcement mechanisms are consistent with established legal principles.
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).