The Price Gouging Prevention Act of 2025 establishes a federal prohibition against selling goods or services at a grossly excessive price, especially during periods of significant market disruption. It aims to protect consumers and ensure fair market practices by defining what constitutes price gouging and outlining enforcement mechanisms. The bill broadly defines an "exceptional market shock" to include natural disasters, emergencies, and other atypical market disruptions. Under the Act, it is unlawful for any person to sell or offer a good or service at a grossly excessive price, regardless of their position in the supply chain. An affirmative defense is provided for smaller entities, specifically those with less than $100 million in gross revenue, if they can demonstrate that price increases are directly attributable to uncontrollable additional costs. This revenue threshold will be adjusted annually for inflation by the Federal Trade Commission (FTC). During an exceptional market shock, a person is presumed to be in violation if they possess "unfair leverage" or use the shock as a pretext to increase prices excessively compared to pre-shock averages or competitor prices. This presumption can be rebutted if the person demonstrates by clear and convincing evidence that the price increase is directly due to additional, uncontrollable costs incurred in procuring or providing the good or service. The bill defines unfair leverage through several characteristics, including earning at least $1 billion in gross revenue, discriminating between trading partners, being a critical trading partner, engaging in unfair practices, or holding a dominant market position. A dominant position is presumed if a seller has a 40 percent or greater market share or a buyer has a 30 percent or greater market share in a relevant market. The Federal Trade Commission is granted expanded authority to enforce these provisions, treating violations as unfair or deceptive acts or practices. The FTC can bring civil actions in federal court to enjoin violations, enforce compliance, obtain injunctions, and seek civil penalties, damages, restitution, or other equitable relief. Civil penalties can be substantial, reaching up to 5 percent of an ultimate parent entity's revenues, with higher penalties for those with unfair leverage. The FTC is also mandated to issue regulations and guidelines within 180 days of enactment, defining key terms such as "grossly excessive price" and "market." State Attorneys General are granted concurrent authority to bring civil actions in federal or state courts, with provisions for notifying and allowing FTC intervention. This ensures a broad enforcement reach while preserving existing state laws. Furthermore, the bill requires certain publicly traded companies, termed "covered issuers," to provide detailed disclosures in their SEC filings (Form 10-Q or 10-K) following an exceptional market shock. These disclosures must include percentage changes in sales volume, average prices, gross margins, and a detailed narrative explaining pricing strategies and cost changes. To support these efforts, the bill appropriates $1 billion to the FTC for its work through fiscal year 2033.