HR4966-119

1. Short title This Act may be cited as the Stop Price Gouging in Grocery Stores Act of 2025.

2. Prohibition on price gouging An operator of a retail food store may not sell or offer for sale an item at a grossly excessive price. An operator of a retail food store does not sell or offer for sale an item at a grossly excessive price in violation of subsection (a) if the retail food store demonstrates to the Commission that the increase in the price of the item involved is directly attributable to additional costs that are— not within the control of the retail food store; and incurred by the retail food store in procuring, acquiring, distributing, or providing the item. Not later than 180 days after the date of the enactment of this Act, the Commission shall promulgate, pursuant to 553 of title 5, United States Code, regulations with respect to violations of subsection (a) that shall include guidelines on what constitutes (for purposes of this Act)— a market; a grossly excessive price for an item; and an excessive price for an item. For purposes of subsection (a) and the guidelines required by subsection (c), the Commission shall define the term grossly excessive price using any metric it deems appropriate. In formulating the definition described in paragraph (1), the Commission shall consider whether to provide that such term shall include a price for an item that is an amount equal to or greater than 120 percent (or a lesser percentage, as determined appropriate by the Commission) of the average price for such item in the market during the 6-month period preceding the sale or offer for sale that allegedly violates subsection (a).

3. Prohibition on surveillance-based price setting An operator of a retail food store may not engage in surveillance-based price setting, including by— adjusting the price of any item for a consumer (directly or indirectly) based on the personal information of the consumer, including such personal information collected using facial recognition technology; and using an electronic shelf label to change the price of an item for a consumer based on the personal information of such consumer. An operator of a retail food store does not engage in surveillance-based price setting in violation of subsection (a) if the retail food store demonstrates to the Commission that each of the following conditions is met: A difference in the price of an item is based solely on reasonable costs associated with providing the item to different consumers. A discounted price of an item is offered to members of a particular group that relates to occupation, age, military service, student status, or other factors approved by the Commission, based on publicly disclosed eligibility criteria. Any discount or reward with respect to an item is offered uniformly to all consumers who meet the disclosed eligibility criteria. Any personal information is used solely to offer or administer the discount or reward and is not used for any other purpose, including targeted advertising and surveillance-based price setting. Notwithstanding subsection (a), an operator of a retail food store may use biometric data of a consumer if such consumer chooses to voluntarily verify the identity of such consumer by providing such biometric data, if such retail food store— informs the consumer or the legally authorized representative of the consumer in writing that such biometric data is being collected, stored, or used by such retail food store; informs the consumer or the legally authorized representative of the consumer in writing of the specific purpose and length of term for which such biometric data is being collected, stored, and used; informs the consumer or the legally authorized representative of the consumer in writing of the specific circumstances under which biometric data is shared with law enforcement; receives a written release executed by the consumer or the legally authorized representative of the consumer for the collection, storage, or use of such biometric data; and does not sell such biometric data to, or share such biometric data with, any third party.

4. Required disclosure of use of facial recognition technology A retail food store that uses facial recognition technology at such retail food store shall notify consumers of such retail food store (in plain and simple language) about such use and the intended purpose of such technology and use through clear and conspicuous signage placed at the main entrance to the retail food store. For purposes of this section, the term retail food store does not include an online entity.

5. Prohibition on electronic shelf labels An operator of a retail food store larger than 10,000 square feet— may not use an electronic shelf label or any digital shelf display technology in such retail food store; and shall use a non-digital presentation of the price of each item in such retail food store. Nothing in this section may be construed to prohibit a retail food store from providing a consumer, based on the purchase history of such consumer, a discounted or promotional price in accordance with the conditions described in section 3(b). For purposes of this section, the term retail food store does not include an online entity.

7. Preemption of directly conflicting State laws Nothing in this Act may be construed to preempt, displace, or supplant any State law, except to the extent that a provision of State law conflicts with a provision of this Act, and then only to the extent of the conflict. For purposes of this section, a provision of State law does not conflict with a provision of this Act if such provision of State law provides additional protections to consumers protected under this Act with respect to price gouging, surveillance-based price setting, collecting personal information, or using facial recognition technology in retail food stores.

9. Definitions In this Act: The term biometric data means data generated by automatic measurements, including data gathered through the use of facial recognition technology, or other representations of the biological characteristics of a consumer, including— fingerprints; voice prints; iris or retina scans; gait; and other unique biological patterns. The term Commission means the Federal Trade Commission. The term electronic shelf label means electronic and wireless paper (E-paper) displays or digital price tags that present product and pricing information. The term electronic surveillance technology means a technological method, system, or other tool of surveillance used to observe, monitor, or collect information related to an consumer, including sensors, cameras, device tracking, biometric monitoring, facial recognition technology, or other forms of observation or data collection that are capable of gathering personal information about a consumer. The term facial recognition technology means technology that facilitates or otherwise enables an automated or semi-automated process that— assists in identifying a consumer based on the physical characteristics of the face of such consumer; or logs characteristics of the face, head, or body of a consumer to infer the emotion, associations, activities, or location of such consumer. The term item means a specific and distinct product, good, or commodity available for sale. The term non-digital presentation of price means— a sign that offers the unit price for 1 or more brands or sizes of a given item; a sticker, stamp, sign, label, or tag affixed to the shelf upon which the item is displayed; and a sticker, stamp, sign, label, or tag affixed to the item. The term personal information means any quality, feature, attribute, or trait of a consumer that is reasonably capable of being associated with, or could be reasonably linked to, directly or indirectly, a particular consumer or a household of a particular consumer, including— any immutable characteristic, including race and eye color; any mutable characteristic, including address, weight, citizenship, and family or parental status; identifiers, including a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, driver’s license number, passport number, and other similar identifier; commercial information, including records of personal property, products or services purchased, obtained, or considered, and other purchasing or consuming histories or tendencies; biometric data; internet or other electronic network activity information, including browsing history, search history, and other information regarding interaction by such consumer with a website, application, or advertisement; geolocation data; audio, electronic, visual, thermal, olfactory, and other similar information; professional or employment-related information; educational information, including educational experience, qualifications, and affiliations; inferences drawn from any of the information described in this paragraph and used to create a profile about such consumer reflecting the preferences, characteristics, psychological trends, predispositions, behavior, attitudes, intelligence, abilities, and aptitudes of such consumer; interests, including the political, personal, and professional affiliation of such consumer; financial circumstances, including personal or household wealth, income, property, debt, and credit history; and actions, habits, behaviors, and attributes of such consumer, whether in a physical or digital environment. The term pre-dispute arbitration agreement means any agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement. The term pre-dispute joint action waiver means an agreement, including as part of a pre-dispute arbitration agreement, that would prohibit, or waive the right of, a party to the agreement from participating in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement. The term price means the amount charged to a consumer in relation to a transaction, including any related cost, fee, and other material term of the transaction that has a direct bearing on the amount paid by the consumer for the item sold or offered for sale to the consumer. The term retail food store has the same meaning given the term in section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012). The term surveillance-based price setting means offering, setting, or informing a customized price for an item for a specific consumer or group of consumers, based, in whole or in part, on personal information collected through electronic surveillance technology, including such information gathered, purchased, or otherwise acquired.